Food prices fall 0.9pc in January

Lower fruit and vegetable prices helped pull down the food price index in February, Statistics New Zealand said today.

The food price index fell 0.9 per cent for the month, the largest monthly decrease since a 1.1 per cent decline in February 2000.

Prices fell for the fruit and vegetables, meat, fish and poultry, and grocery food, soft drinks and confectionery subgroups, but rose for restaurant meals and ready-to-eat food.

Fruit and vegetable prices fell 6.6 per cent in February, driven by a 7.8 per cent fall in fresh vegetables and an 8.8 per cent fall in fresh fruit prices.

Meat, fish and poultry prices fell 1.3 per cent, with beef steak down 3.2 per cent and lamb down 8.1 per cent.

Grocery food, soft drinks and confectionery prices fell 0.2 per cent, with dairy products down 1.3 per cent, and boxed assorted chocolates down 15.1 per cent. But potato chips became more expensive, rising 10.1 per cent.

For the year to February, food prices rose 1.1 per cent. On an annual basis, prices for grocery food, soft drinks and confectionery were up 1.6 per cent; restaurant meals and ready-to-eat food up 2.6 per cent; and meat, fish and poultry rose 1.6 per cent. Fruit and vegetables fell 5.6 per cent for the year.

- NZPA