Milk prices soar 9.3pc in year to April

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The price of fresh milk rose 9.3 per cent in the 12 months to April, while overall food prices rose 6.1 per cent, the highest annual increase since July 2009, figures released by Statstics New Zealand show.

The annual price rises included a 2.2 per cent rise due to the GST hike on October 1 last year, which the government says was compensated for by the lowering of income taxes.

"In the year to April 2011 all subgroups made upward contributions, with the most significant coming from grocery food (up 5.8 per cent).

Fruit and vegetables (up 8.7 per cent), meat, poultry, and fish (up 6.0 per cent), restaurant meals and ready-to-eat food (up 4.6 per cent), and non-alcoholic beverages (up 7.6 per cent) also increased," Statistics New Zealand said.

"Within these subgroups, the most significant upward contributions in the year to April 2011 came from higher prices for fresh milk (up 9.3 per cent) and lamb (up 23.8 per cent)," Stats NZ said.

Despite the annual 9.3 per cent rise, fresh milk prices fell 0.2 per cent in the month of April, after the same drop in March.

General food prices were flat (up 0.1 per cent) in the April 2011 month

"The most significant increase in April 2011 came from the grocery food subgroup (up 1.0 percent). This increase was influenced by higher prices for margarine (up 12.8 percent, reflecting a reduction in the level of discounting) and bread (up 2.1 per cent).

"Bread prices are now 4.6 per cent higher than at an earlier peak in May 2009," Statistics NZ prices manager Chris Pike said.

"Fruit and vegetable prices fell 3.3 per cent in April 2011.

This was influenced by price falls for lettuce (down 15.8 per cent) and kiwifruit (down 27.4 per cent).

Kiwifruit prices usually fall in April as the new season's crop becomes available."

- INTEREST.CO.NZ