Food prices decline
Falling prices for chicken stem from expanded investment in farming operations.
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New Zealand food prices declined in September, impacted by cheaper bananas, lamb and chicken.
Food prices fell a seasonally adjusted 0.2% in September following a 1.3% jump in August, Statistics New Zealand said. On an unadjusted basis, food prices slid 0.9% in the month.
Fruit and vegetable prices fell 5.1% in September after jumping 5.8% in August. Vegetable prices dropped 5.5% with seasonally lower prices for tomatoes, capsicum and cucumber. Fruit prices declined 4.4% as bananas slid 13% to $3.05/kg after spiking 22% in August to a record high of $3.51/kg due to a supply shortage.
Meat, poultry and fish prices fell 0.9%. Mutton, lamb and hogget prices slid 4.5% with the price of lamb chops down 6.9% to $13.42/kg and chicken breasts declining 4.2% to $13.52/kg, the lowest level since October 2007.
"The generally falling prices for chicken in recent months are the result of expanded investment in farming operations by the New Zealand poultry industry," Poultry Industry Association executive director Michael Brooks said. "With supply decisions being made one to two years ahead, temporary periods of under- or over-supply can occur and affect prices accordingly."
On an annual basis, food prices advanced 0.1% in the year through September.
The food price index accounts for about 19% of the consumers price index, which is the Reserve Bank's mandated inflation target when setting interest rates. Consumer prices rose an annual 0.4% in the June quarter, the seventh quarter below the Reserve Bank's 1-3% target band. Statistics NZ is scheduled to publish September quarter consumer prices next Tuesday.
(BusinessDesk)
Tina Morrison
Thu, 13 Oct 2016
Thu, 13 Oct 2016
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Food prices decline
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