Fifth consecutive monthly fall in food prices

Food prices decreased 0.3 percent in the December 2009 month, Statistics New Zealand said today. This is the fifth consecutive monthly fall in food prices, the first time it has happened since December 1967.

December’s fall in the food price index (FPI) was largely driven by lower prices for the meat, poultry, and fish subgroup (down 1.2 percent). Prices returned to levels last recorded in October 2008, but are still 10.1 percent higher than two years ago.

Price falls for grocery food (down 0.3 percent), non-alcoholic beverages (down 1.2 percent), and restaurant meals and ready-to-eat food (down 0.2 percent) also contributed to the fall in the December 2009 FPI.

The fruit and vegetables subgroup rose 1.8 percent in December 2009, following four consecutive falls. Prices have now fallen 15.7 percent since their winter peak in July 2009.

For the year to December 2009, food prices rose 0.9 percent. Three subgroups recorded annual increases: non-alcoholic beverages (up 6.6 percent), restaurant meals and ready-to-eat food (up 2.8 percent), and grocery food (up 0.3 percent). The meat, poultry, and fish subgroup and the fruit and vegetables subgroup fell 0.9 percent and 2.1 percent, respectively.

Although food prices are now 0.9 percent higher than a year ago, they are 10.0 percent higher than two years ago.

Geoff Bascand

20 January 2010

Government Statistician