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Home / Politics

Food prices up 10.3pc in year

NZPA
11 Dec, 2008 03:00 PM2 mins to read

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KEY POINTS:

Food prices kept rising briskly last month, adding a further sting to the calls yesterday from Reserve Bank Governor Alan Bollard for widespread price falls throughout the economy.

Figures from Statistics New Zealand show food prices up 0.8 per cent in November compared with October, taking the rise
for the year to 10.3 per cent.

Grocery prices last month were up 1 per cent, with yoghurt up 6.8 per cent and bread up 1.7 per cent, although processed cheese did slip 10.8 per cent. Grocery food is up 11.5 per cent for the year, with bread up 18.3 per cent, cheddar cheese up 35.2 per cent, fresh milk up 6.7 per cent and butter up 39.9 per cent.

In a pointed speech at the Wellington Chamber of Commerce yesterday, Dr Bollard said that, as with other sectors of the economy, some food prices needed to fall.

Dr Bollard warned that further central bank interest rate cuts depended on all sectors playing their part and not adding to inflation.

Yesterday's food price data did show a 0.3 per cent fall in fruit and vegetables, which are now 16 per cent ahead of a year ago. Among falls in November from October, tomatoes were down 29.6 per cent, lettuce was down 32.4 per cent, strawberries down 36.9 per cent and broccoli down 24.2 per cent.

Apples were up 17.5 per cent, potatoes up 13 per cent, carrots up 26.3 per cent and nectarines up 57.2 per cent.

Non-alcoholic beverages rose 1.8 per cent in November, while the meat, poultry and fish subgroup lifted 0.3 per cent. Frozen chicken was up 6 per cent and bacon up 3.2 per cent.

The 10.3 per cent annual rise is above the 9.9 per cent rise in the year to October, but under the 10.8 per cent in the September year.

- NZPA

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