Annual food prices spike in September

Food prices are up 1.2% annually in the year to September thanks to rising grocery and takeout meals, although some vegetables continue to drop in price significantly. Photo / 123rf

Food prices increased 1.2% in the year to September, up 0.8% on August, StatsNZ said today.

Prices for restaurant and ready-to-eat meals contributed heavily, up by 3.5% a year.

Increases in lunch and brunch meals, takeaway coffees and hamburgers also contributed.

Grocery prices increased by 2.7% in the year to September, driven by higher prices for olive oil, butter, and chocolate biscuits.

“The price for a 1-litre bottle of olive oil has increased by about 58% since this time last year, with an average price of $21.56,” StatsNZ consumer prices manager Nicola Growden said.

However, fresh fruit and vegetable prices partially offset the increase, down by 8.3%.

Vegetables contributed largely to the decline, with kūmara prices down 57.5% and onion prices down 43.7%.

Growden said the average price for 1kg of onions was now the cheapest recorded since 2012 at $1.68.

Meat, poultry and fish prices were up 1.2% on a monthly basis, now 1.3% higher annually compared to last year.

Non-alcoholic beverage prices remain the highest for food groups compared to last year, 4.4% more expensive annually.

Alcohol prices also remain high, up 3.3% in the year to September. Whereas cigarettes had no change for the month, remaining 10% more expensive than last year.

Other measures reported included petrol prices, which are down 14.9% compared to September last year, with diesel down 21.4%.

The price of flights continues to fluctuate, with domestic prices down 0.6% monthly, while international flight prices grew 0.4%.

As for rental prices, the stock measure grew by 0.3% monthly, now up 4.3% compared to last year.

While the flow measure fell by 0.2% monthly, it is also still up for the year to September by 1.2%.

The stock measure shows rental price changes across the whole rental population, including renters currently in tenancies.

The flow measure of rents captures rental price changes only for dwellings that have a new tenancy started in the reference month.

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.