Largest food price rise in six years

Butter costs $4.58 today compared with $3.45 a year ago. Photo: Supplied.

Higher prices for fruit, vegetables and dairy products resulted in a 2.2 per cent increase in food prices to the end of February 2017.

Food prices rose 0.2 per cent in the month, compared with a 2.8 per cent increase in January. With seasonal adjustment, the cost of food rose 0.8 percent in February 2017.

'This was the largest annual increase since December 2011,” says Statistics NZ consumer prices manager Matthew Haigh.

'500g of the cheapest available butter cost on average $4.58 this month, compared with $4.06 last month and $3.45 a year ago.”

Higher prices were seen in all sub-groups except meat, poultry, and fish which was down 2.0 per cent. Fruit and vegetables were up 7.7 percent and grocery food was up 2.3 percent.

Vegetable prices were up 12 percent, led by higher prices for carrots, kumara, and tomatoes. Carrot prices are at an all-time high, up 51 per cent since February 2016.

One kilogram of carrots cost $3.53 in February 2017, compared with $2.34 a year ago.

Apple prices also contributed to the large movement, up 32 per cent from February last year. However, apple prices in February were down 13 percent from January.

Prices for dairy products also increased. Butter prices were up 33 percent compared with February 2016, and 13 percent from January 2017.

Higher prices for fruit and vegetables which are up 1.8 percent, were offset by lower prices for meat, poultry, and fish (down 1.5 percent).

Seasonal influences on fruit and vegetable prices were apparent as we move out of summer. Increases were seen for summer produce, led by strawberries and lettuce, and decreases were seen for end-of-summer produce, led by apples and potatoes.

Key facts

Monthly change

Food prices rose 0.2 percent in the February 2017 month. After seasonal adjustment, food prices rose 0.8 percent.

In February 2017 compared with January 2017:

*Fruit and vegetable prices rose 1.8 per cent (up 4.5 per cent after seasonal adjustment).

*Meat, poultry, and fish prices fell 1.5 per cent.

*Grocery food prices rose 0.2 per cent (up 0.2 per cent after seasonal adjustment).

*Non-alcoholic beverage prices rose 0.1 per cent.

*Restaurant meals and ready-to-eat

Annual change

Food prices rose 0.2 per cent.

Food prices increased 2.2 per cent in the year to February 2017.

In February 2017 compared with February 2016:

*Fruit and vegetable prices increased 7.7 per cent.

*Meat, poultry, and fish prices decreased 2.0 per cent.

*Grocery food prices increased 2.3 per cent.

*Non-alcoholic beverage prices increased 1.7 per cent.

*Restaurant meals and ready-to-eat food prices increased 2.0 per cent.

Key average prices

*The average price for a 250g punnet of strawberries was $7.05 in February 2017, compared with $5.03 in January 2017 and $5.64 in February 2016.

* The average price for a 500g block of butter was $4.58 in February 2017, up from $4.06 in January 2017 and $3.45 in February 2016.

*The average price for a kilo of apples was $4.40 in February 2017, compared with $5.04 in January 2017 and $3.34 in February 2016.

*The average price for a kilo of carrots was $3.53 in February 2017, up from $3.42 in January 2017 and $2.34 in February 2016.

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2 comments

RISING FOOD COSTS

Posted on 13-03-2017 13:54 | By jeancraven@kinect.co.nz

No wonder people are struggling. Read that minimum wage should be $19.11 ph to keep up with inflation..............


This explains why

Posted on 13-03-2017 17:18 | By astex

We have had Brexit, Trump and in the near future big political upsets throughout Europe. With everything going up except wages the ordinary people have had enough. We are told that the economy is in good shape but WE do not experience it. Roll on election day for our chance to open the eyes of politicians and shock them awake.


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