New Zealand food prices fell for a third month due to cheaper vegetables which were in season, though more expensive milk pushed up prices over the year.
The food price index slipped 0.1 percent in December, adding to the 0.2 percent and 1 percent declines in the prior two months, according to Statistics New Zealand. On an annual basis, food prices were up 1.5 percent, accelerating from a 1.4 percent annual increase in November.
The monthly decline was led by a 3.7 percent fall in the price of vegetables, with cheaper lettuces, broccoli and cabbages, and were down 1.3 percent on the year.
Fresh milk prices rose 2.7 percent in December, and were up 9.4 percent on the year. More expensive dairy products were the main driver of the annual increase in food prices, with yoghurt up 10 percent, cheese up 7.7 percent and other milk products up 10 percent.
Last month the Reserve Bank gave a stronger signal in its monetary policy statement that interest rates will rise this year, noting that inflationary pressures are "projected to increase." Food prices make up almost 19 percent of the consumer price index, and the December CPI is scheduled for release next week.
Grocery food prices were flat in December, though up 2 percent in the year. Meat, poultry and fish prices rose a monthly 0.8 percent and an annual 1.6 percent.
Non-alcoholic drinks prices fell 2.1 percent in December, for an annual increase of 3 percent, and restaurant meals and read-to-eat foods prices increased a monthly 0.5 percent and an annual 1.9 percent.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Taniwha tax axed at the stroke of a pen
- Auckland intensification positive; housing affordability and business land supply slightly negative
- Search leader dismisses 'glide landing' theory in Flight MH370 crash
- Trump encourages Russian hackers to release Clinton emails
- Trustpower tax ruling: Government needs to act to clarify law for other firms
Most listened to
- Government will need to tidy up tax law in wake of Trustpower case, says Deloitte New Zealand tax partner Greg Haddon
- The reviled Taniwha Tax has been dropped from Auckland's Unitary Plan. Taxpayers' Union's Jordan Williams says it's a major coup
- Abano CEO Richard Keys on why his company doesn't have to pay top dollar for dental practices
- Nevil Gibson's Carry On has the latest on airlines, aircraft and route news of the week
- Despite a few howls of protest, land economics expert Adam Thompson says the Auckland Unitary Plan is positive