NZ food prices edge up in January

New Zealand food prices rose in January, snapping five months of falling prices.

Fruit, vegetables, meat and milk led the rise.

The food price index increased 2% in January, having previously fallen 0.8% in December, Statistics New Zealand figures show. Prices dropped 0.6% on an annual basis.

Fruit prices rose 5.5% in January, influenced by higher prices for strawberries and apples. The cost of apples rose 14.5% to an average of $3.95 per kilogram during the month. Vegetable prices lifted 3.4 %, with broccoli, tomatoes and lettuce prices all increasing about 20%.

Meat, poultry and fish prices rose 3.3%, following a 2.7% fall in December. Chicken prices, which had reached a seven-year low in December, increased 10%, with chicken breasts now costing an average of $15.45 per kilogram. Chicken prices fell 5.4% on an annual basis, and have been dropping since June last year.

Food prices account for about 17% of the Consumers Price Index, which has tracked below the Reserve Bank's target band of between 1-3 % for more than a year.

Data’s show grocery food prices rose 1.6% in January but were down 2.1% on an annual basis. The price of fresh milk lifted last month, up 4.9%. The average price of the cheapest available two litre bottle of blue-top milk was $3.29, from $3.13 in December.

Dairy prices are still lower on an annual basis across most products, with fresh milk prices down 9% and yoghurt 11% cheaper, in a year where global dairy prices collapsed. However, cheese and chocolate were more expensive, with cheese prices up 4.7% for the year.

Non-alcoholic beverages prices rose 2.2% in January and were up 0.2% on an annual basis, while prices for restaurant meals and ready-to-eat food increased 0.2% in the month for a 2% rise in 2015.

(BusinessDesk)

Sophie Boot
Fri, 12 Feb 2016

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NZ food prices edge up in January

Milk price rise has economists scratching their heads

Milk price rise has economists scratching their heads