Fruit and veges get cheaper but domestic airfares go up

Stats NZ said domestic airfares went up 10.8% last month compared to October, but international airfares were a different story. Photo / NZME

Fresh produce prices have plummeted but domestic airfares were up in the latest Stats NZ inflation data.

The selected price indexes for November, released today, showed a slight annual increase in overall food prices, up 1.3%.

But fruit and vegetable prices were down 8.5% across the year and down 2.9% compared to October.

Alcoholic drinks and tobacco were up 5.1% compared to a year earlier but down 0.2% compared to October 2024.

Stats NZ said domestic airfares went up 9.6% over the year and up 10.8% month-on-month.

But the situation was better for those flying overseas. International airfares were down 1.8% compared to November 2023 and down 2.7% month-on-month.

ASB economists said the fruit and vegetable price decline was actually more modest than usual for this time of year.

Higher prices for selected kiwifruit and apples were recorded but tomatoes and broccoli were cheaper.

Lower beef and poultry prices helped push meat prices lower, the bank economists added.

“We continue to expect modest changes in overall food prices over 2024, with a modest pick-up in 2025, given recent improvements in global food commodity prices.”

ASB economists said it seemed earlier disinflationary forces were waning, “with the risk of the external pricing environment becoming less benign over 2025″.

But ASB still expected the Reserve Bank to bring the Official Cash Rate down in the first half of next year, including a 50 basis points cut in February.

The economic outlook was still uncertain, they said.

“The figures suggest that just over 2% annual CPI inflation should likely be reached by the end of the year,” ASB added.

The economists said downside risks to the inflation outlook over 2025 seemed to be easing.