Food prices fell 0.6 per cent in October, reflecting seasonally lower prices for vegetables, according to the latest figures from Statistics New Zealand.

'Lower food prices in October mainly reflected cheaper vegetables," says prices manager Chris Pike.

'Tomato, lettuce, capsicum, and broccoli prices all fell, as they usually do at this time of year.”

Out of the five food subgroups, two contributed to the fall in the food index (FPI): fruit and vegetables, which were down 5.5 per cent, and restaurant meals and ready-to-eat food, which was down 0.5 per cent.

Chris says the key individual fall in October came from seasonally lower prices for tomatoes, down 32 per cent.

Prices were also lower for lettuce, down 27 per cent, chocolate biscuits, down 10 per cent, and capsicum, down 26 per cent.

However, Chris says prices were higher for soft drinks, carrots, plain biscuits, sweets, pumpkin, and potatoes.

Carrot prices were up 29 per cent and usually rise at this time of year, says Chris.
For the year to October 2012, food prices increased 0.3 per cent.

This follows five consecutive annual decreases.

Four of the five food subgroups made upward contributions to the FPI: fruit and vegetables (up 8.4 per cent), restaurant meals and ready-to-eat food (up 0.8 per cent), meat, poultry, and fish (up 0.8 per cent), and non-alcoholic beverages (up 0.1 per cent).

These increases were countered by a 2.7 per cent fall in grocery food prices.
The key annual increases were tomatoes (up 61 per cent, from $5.15 to $8.29 per kilogram) and kumara (up 93 per cent).

Higher prices were also recorded for avocados, pumpkin, soft drinks, and chicken pieces. The key annual decreases were fresh milk (down 9.5 per cent) and butter (down 28 per cent).
The FPI measures the rate of price change of food and food services purchased by households.

Statistics NZ visits shops across New Zealand to collect prices for the FPI and check package sizes.