NZ November food prices fall on vegetable supply

November food prices fall on greater availability of seasonal vegetables

By Peter Kerr

Dec. 13 (BusinessDesk) - The typical increase in supply of seasonal vegetables has been the main contributor to an overall 0.6% fall in the November food price index.

Statistics New Zealand said fruit and vegetable prices fell 5.7% on the back of lettuce reducing 34%, tomatoes down 27% and broccoli down 45%. Such falls are usual, however, this November's prices are two-thirds higher than the average November level over the past 10 years for lettuce and one-third higher for broccoli. Potato prices increased 16% during the month.

The November drop in the food price index follows an increase of 2.2% and 0.7% increase in October and September prices respectively, though the Oct. increase reflects a GST adjustment.

Other price falls were recorded for meat, poultry and fish prices, down 0.5%. Higher prices were recorded for non-alcoholic beverages, which increased 1.7% as discounting among supermarkets was less evident. Soft-drinks in particular increased by 2.8%

Restaurant meals and ready to eat food was up 0.6% and grocery food increased by 0.1% for the food price index in November.

Looking across the year ending in November, Statistics New Zealand said food prices rose 4.8%, including the GST effect. All five subgroups moved up in the annual comparison, with grocery food up 5%, fruit and vegetables up 11.9%, restaurant meals and ready-to-eat food up 3.6%, non-alcoholic beverages up 3.2% and meat, poultry and fish up 1.1%

The most significant individual upward contributions came from higher prices for fresh milk which increased 14.7%, potatoes up 32%, tomatoes up 42% and cheddar cheese up 24%. Fresh chicken dropped 4.3% and bacon was down 3.5%.

(BusinessDesk)

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