On a monthly basis, food prices rose 0.5 per cent in August 2023 compared with July 2023. After adjusting for seasonal effects, they were up 0.4 per cent.
“Prices for fruit and vegetables such as tomatoes, grapes, cucumbers, and nectarines contributed the most to the overall monthly rise,” Mitchell said.
While the price rises were still steep they represent a slight decline in the rate of increase compared to recent months.
Food prices increased 9.6 per cent in the 12 months ended July 2023 and grocery food prices increased 11.9 per cent in the same period.
The following list shows each food group’s price rise for the year ended August 2023, in order of their contribution to the overall movement:
- Grocery food prices increased 10.6 per cent
- Restaurant meals and ready-to-eat food prices increased 8.9 per cent
- Meat, poultry, and fish prices increased 8 per cent
- Non-alcoholic beverage prices increased 9.1 per cent
- Fruit and vegetables prices increased 5.4 per cent.
Today’s results were close to expectations, said Westpac senior economist Satish Ranchhod.
“We also doubt they would have been a big surprise to the RBNZ who, like us, expects that inflation will gradually ease from its current high levels,” he said.
“For households, although food price inflation has slowed, it remains painfully high,” he said.
Living costs were still rising rapidly for many families across the country.
“Crucially, those increases have been heavily centred on the prices of necessities,” he said.
“In addition to the rise in food prices and rents, petrol prices have risen more than 50 cents/ltr since the end of June (when the reduction in fuel taxes was reversed). On top of those factors, many households are rolling on to higher mortgage rates. We expect these large increases in living costs will be a significant drag on household spending over the coming year.”
