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NZ food prices edge up in September on more expensive meat and groceries

The food price index rose a seasonally adjusted 0.1% in September from August.

Staff Reporter
Tue, 13 Oct 2015

New Zealand food prices edged up in September, as more expensive meat, poultry and groceries offset a decline in fruit and vegetables.

The food price index rose a seasonally adjusted 0.1% in September from August, Statistics New Zealand said. Meat, poultry and fish prices increased 1.8% in September, reflecting more expensive beef and processed meat. That helped offset a 0.1% fall in the price of fruit and vegetables, with cheaper tomatoes, lettuce, and capsicums.

Grocery food prices, the biggest component of the index, increased 0.2%, halting August's 1.8% decline, and reflecting less discounting on snack foods and sauces although dairy products, including yoghurt, cheese and fresh milk remained cheaper. Restaurant meals and ready-to-eat foods increased 0.2%, while non-alcoholic beverage prices fell 0.6%.

Today's data show food prices increased 0.7% on an annual basis, led by a 5.3% increase in the price of fruit and vegetables. Meat, poultry and fish prices rose 0.7% and restaurant meals and ready-to-eat foods advanced 2%. Grocery food prices fell 1.5% in the year, and non-alcoholic beverage prices decreased 0.3%.

Food prices account for about a fifth of the broader consumers price index, which dropped below the Reserve Bank's 1-3% target range, rising at an annual pace of 0.3% in the year ended June 30. Meanwhile, the non-tradable component, which covers domestic inflation, was at its lowest level since December 2001 at 2%. Analysts will get an update with the September CPI report due for release on Friday.

(BusinessDesk)

Staff Reporter
Tue, 13 Oct 2015
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NZ food prices edge up in September on more expensive meat and groceries
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