In the year to March 2015, food prices increased 1.9 per cent, following a 1.5 per cent increase in the year to February 2015, according to Statistics New Zealand. This was the largest annual increase since December 2011.
The food price index (FPI) measures the rate of price change of food and food services purchased by households. Statistics NZ visits shops across New Zealand to collect prices for the FPI and check package sizes.
Fruit and vegetable prices increased seven per cent. Prices were higher for lettuce, potatoes, bananas, strawberries, carrots, and dried apricots, while prices for tomatoes, avocados, and cucumber were lower. Banana prices, at $3.05 per kilo, are now at their highest level since their series began.
Meat, poultry, and fish prices increased 2.5 per cent, reflecting higher prices for beef, up eight per cent, which is now 0.3 per cent below the peak in January 2015.
Grocery food prices increased 0.5 per cent in the year to March, influenced by higher prices for cakes and biscuits, up 7.2 per cent; fresh milk, up 2.4 per cent; and yoghurt, up 7.8 per cent. This was partly offset by lower bread, butter, and cheese prices.
Supermarkets discounting some own brand bread to $1 from the second half of last year contributed to lower bread prices.
Month on month
In month on month terms in March 2015, food prices rose 0.1 per cent, Statistics New Zealand. This follows a 0.7 per cent fall in February and a 1.3 per cent rise in January.
“Less discounting on items such as biscuits, yoghurt, and sauces contributed to higher grocery prices. This was countered by lower prices for fruit and vegetables,” prices manager, Chris Pike, said.
Grocery food prices rose 1.2 per cent, with higher prices across most of the sub-group. This was the highest monthly rise for grocery food prices since January 2013.
Higher prices for meat, poultry, and fish, up 0.4 per cent were influenced by higher prices for beef, partly offset by lower prices for chicken and pork.
In March, the fall in fruit and vegetable prices, down 3.1 per cent; was influenced by seasonal price falls for both vegetables, down 3.5 per cent; and fruit, down 2.6 per cent.
The main downward contributions came from apples and potatoes, partly countered by higher prices for strawberries and tomatoes. With the arrival of new season stock, apple prices have fallen 48 per cent from their peak in January.
Lower prices were also recorded for non-alcoholic beverages, influenced by more discounting of packaged coffee and tea.
Annual change in prices
