December food prices among lowest for year
DECEMBER food prices were again among the cheapest for the year, but for 2016 overall food prices rose 0.6%.
According to Statistics New Zealand, food prices fell 0.8% in December while the year’s food prices increased by 0.6% led by vegetables, milk and butter.
Milk rose 6.1% to $3.32 for two litres while butter rose 34% to $4.12 for 500g.
SNZ’s consumer prices manager Matt Haigh said lower food prices were seen across most food items last December, with nonalcoholic beverages falling 3.1%.
ASB economist Kim Mundy said the 0.8% December decline was ‘‘slightly lower’’ than expected.
Vegetable prices fell for the fourth month in a row in December, led by cabbage, broccoli, and cauliflower.
Mr Haigh said the seasonal movement was expected as we move through summer.
‘‘December has been the cheapest month for these kinds of vegetables for the past five years,’’ he said.
Ms Mundy said the main contributors to the 0.6% increase were groceries and restaurant and takeaway sectors.