Food prices rise 0.3% in July

By Phil Boeyen, ShareChat Business News Editor

Monday 13th August 2001

It's cheaper to eat a salad but more expensive to buy a pie according to latest food price data.

Figures for the month show prices climbed 0.3% in July compared with the previous month, with grocery food, soft drinks and confectionery prices increasing by 0.7%.

The figure was influenced both by general price rises and by items moving off special.

Statistics New Zealand says the most significant upward contributions to this subgroup, and to the overall food price index, came from frozen and chilled meat pies, and bread and bread rolls.

Meat, fish and poultry prices rose 1% in the period, driven by higher prices for mince, sausages and bacon. Poultry prices fell 1%, the third month in a row they have decreased.

Restaurant meals and ready-to-eat food prices rose by 0.5% in July following increases of 0.2% in June and 0.7% in May.

The most significant downward contributions to lower fruit and vegetable prices came from lower prices for tomatoes, lettuce and cucumber.

Deutsche Bank says the food price index increase for July is slightly higher than the 0.2% expected.

The bank is picking a third quarter consumers price index of 0.4%, which will see the annual inflation rate fall from 3.2% to 2.3%. The food price index makes up 18% of the CPI.

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