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Wednesday, June 11, 2008

Food Prices increased by 11.8 percent




No surprise that the latest release from Statistics NZ today showed that food prices have increased again. Overall food prices were up by 6.8 percent for the year and the annual increase in grocery food prices is now at 11.8 percent.

Food prices increased 1.0 percent in the May 2008 month. The increase was mainly due to higher prices for the fruit and vegetables subgroup (up 3.8 percent), non-alcoholic beverages (up 2.6 percent) and grocery food (up 0.5 percent).

Within the fruit and vegetables subgroup, the main contributor to the 3.8 percent increase was higher prices for vegetables (up 11.0 percent), driven in particular by tomatoes (up 25.9 percent), lettuce (up 34.5 percent) and broccoli (up 37.3 percent). Fruit prices (down 6.1 percent) made a downward contribution to this subgroup, driven by lower prices for mandarins (down 46.5 percent) and kiwifruit (down 47.6 percent).

For the year to May 2008, food prices rose 6.8 percent. All five subgroups recorded upward contributions, with the most significant upward contribution coming from higher prices for the grocery food subgroup (up 11.8 percent). Within this subgroup, the main contributions came from higher prices for fresh milk (up 21.5 percent), cheddar cheese (up 59.4 percent), bread (up 13.9 percent) and butter (up 80.1 percent).


Peter Conway, Economist
New Zealand Council of Trade Unions - Te Kauae Kaimahi

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