Food prices drop in March, led by fruit, veges, chicken
New Zealand food prices fell in March, adding to the evidence that inflation is benign, as prices fell for fruit and vegetables, and for chicken pieces.
BUSINESSDESK: New Zealand food prices fell in March, adding to the evidence that inflation is benign, as prices fell for fruit and vegetables, such as apples and pumpkin, and for chicken pieces.
The food price index fell 1% last month, says Statistics New Zealand.
Prices declined for all five sub-groups measured for the first time since October 2009.
Prices rose 0.2% compared to March 2011.
Food prices for last month are the final component of consumer prices for the first quarter, which are due for release on Thursday and are expected to show there is little pressure on the Reserve Bank to raise interest rates soon.
The inflation rate was 0.6% in the first three months of the year, according to a Reuters survey.
Prices of fruit and vegetables fell 4.2% in March, with the biggest declines recorded for apples, down 24% as the harvest pushed an abundance onto the market, while pumpkin fell 26% and grapes 20%.
Potatoes declined 5.8%.
Meat, poultry and fish prices fell 1.8%, driven by a 4% decline in the price of chicken pieces.
Grocery prices fell 0.3%, with chocolate biscuits falling 7.8%. Bacon was down 6.5%.
Restaurant meals and ready-to-eat food fell 0.2% and non-alcoholic drink prices 0.1%.
Strawberries were the standout price gainer, rising 24%, and avocados were up 35%.
Ham rose 6.9%and potato crisps 4.5%.
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Food prices drop in March, led by fruit, veges, chicken
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