Butter leads food price increases

We’re all paying more for butter, but spare a thought for small-town bakers.

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 supermarkets was $5.90.

Prices are even higher in remote locations such as Four Square supermarkets in Akaroa, where a block of Mainland butter was $9.19.

In Tapawera, a settlement about 30 kilometres southwest of Nelson, a block of Pam’s was $7.29. A Tapawera Four Square staff member said she had no control over store prices, which were set by the chain’s owner, Foodstuffs.

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: ‘‘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.’’

To reflect the changing tastes of New Zealanders, Statistics NZ has swapped out luncheon sausage from its food price index and is now including olives.

For the month, overall food prices fell

1.1 per cent, thanks to seasonal price falls for tomatoes, lettuces, cucumbers and capsicums.

Tomato prices were down to $7.68 a kilo, compared with $10.02 in September

2017, but were up on a year ago when they were $6.83 per kilo.