New Zealand food prices fell last month led by cheaper, meat and in-season fruit and vegetables, though milk prices rose to a nine-month high.
The food price index fell 0.3 per cent in February, following a 1.9 per cent a month earlier, in its sixth decline in seven months, according to Statistics New Zealand. Annual food prices decreased 0.1 per cent.
Fruit and vegetable prices fell 1.6 per cent in February, with cheaper apples and grapes, while meat, fish and poultry declined 1.4 per cent, led by discounted porterhouse/sirloin steak and chicken pieces.
Grocery prices were unchanged in the month, though fresh milk prices rose 2.1 per cent to their highest level since May last year. Non-alcoholic beverage prices rose 1.3 per cent while restaurant means and ready-to-eat food prices slipped 0.1 per cent.
Food prices account for almost 19 per cent of the consumer price index, which is sitting below the Reserve Bank's target band at 0.9 per cent.