Lavish spread leads food price rises

We’re all paying more for butter, but spare a thought for bakers in some small towns.

The average price of the cheapest 500-gram block of butter was $5.67 in October 2017, compared with $5.55 a month earlier and $3.50 in October 2016, Statistics New Zealand said.

But yesterday, the cheapest price for butter at Countdown and New World was $5.90.

Prices are even higher in remote locations such as Four Square supermarkets in Akaroa, where a block of Mainland butter recently $9.19, and in Tapawera, a settlement about 30 kilometres southwest of Nelson, where a block of Pam’s was $7.29.

"The effects of [dairy] price rises flow on to products such as takeaway biscuits, buns, cakes and coffee, and eating out for lunch and dinner, all of which saw increases in the year to October 2017."

Matthew Haigh, Statistics NZ

A Tapawera Four Square staff member said she had no control over store prices, which were set by the chain’s owner, Foodstuffs.

‘‘We have to purchase everything from Foodstuffs; we can’t buy apples from a local orchard even if it means being cheaper for the customer. There are food safety issues – they have to be able to audit where everything comes from,’’ she said.

Higher overall dairy prices have pushed food prices up 2.7 per cent for the 12 months.

Statistics NZ consumer price index manager Matthew Haigh said dairy products were widely used to make a number of food products.

‘‘The effects of price rises flow on to products such as takeaway biscuits, buns, cakes and coffee, and eating out for lunch and dinner, all of which saw increases in the year to October 2017,’’ he said.

To reflect the changing tastes of New Zealanders, Statistics NZ has changed the foods it compares in its monthly basket used to measure food price inflation.

It has dropped luncheon sausage, milkshakes, cottage cheese, alfalfa sprouts, canned corn, taro, and spring onions, and added olives, fresh herbs and herbal teas.

Items are removed when they become less popular or if they are well represented by other items.

Statistics NZ senior manager Jason Attewell said: ‘‘When new items are added to a particular section, we can end up pricing too many things in that section.

‘‘We have been pricing several types of cheese. While making for a great tasting session, there is rarely any difference in price movements between cottage cheese and camembert.’’

For the month, overall food prices fell 1.1 per cent, thanks to seasonal falls for tomatoes, lettuces, cucumbers, and capsicums.

Tomato prices were down to

$7.68 a kilogram, compared with

$10.02 in September 2017, but were up on a year ago when they were

$6.83/kg. On the rise was the monthly price for kumara, avocados and pumpkins.

Statistics NZ updates the

162-item food price index basket every three years to ensure it reflects what households typically spend on food.