Food Price Increases Add 30 Cents To Average Shop

Food Price Increases Add 30 Cents To Average Kiwi Shop

The latest data release by Statistics New Zealand on food prices shows that the average Kiwi shop of $150 increased by 30 cents during March, says Food and Grocery Council Chief Executive, Katherine Rich.

The monthly food price index explains that food prices increased by 0.2 percent for the month of March 2010 – this compares with a 1.3 percent decrease in February, and a 2.1 percent increase in January.

“To put the 0.2 percent increase for March in context, this means that Kiwis doing the average New Zealand weekly shop of $150 will pay an extra 30 cents at the checkout.”

“Statistics New Zealand makes it clear that while food prices have increased 0.3% over the year to March, this is still the smallest annual increase for over 5 years (since July 2004),”

“We’re part of an international food chain which means that food prices will often fluctuate. This month we had a 0.2 percent increase in food prices, while last month we had 1.3 percent decrease,” says Mrs Rich.

“New Zealanders enjoy food sourced from all over the world, and New Zealand businesses sell their produce to consumers all over the world. When food prices increase internationally, New Zealanders pay more as well, Mrs Rich says.

“Milk, cheese and butter are prime examples. The prices we pay here in New Zealand will always be influenced by the value of commodities internationally, as our local producers seek the best price for their products.”

"New Zealand food companies think very carefully before making any price increases and can often subsidise the NZ market. But they can only do that for so long before having to pass on cost increases”.

ENDS

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