Rise in fruit & vegetable costs
WELLINGTON: The cost of fruit and vegetables rose nearly 9% last year, driven by high prices for potatoes, courgettes and tomatoes.
Stats NZ said the figures, released yesterday, reflect tough growing conditions, international trade restrictions and increased labour costs.
The increase in prices brought overall food price inflation to 2.9% for the year ended December.
That is higher than the most recent consumers price index inflation of just 1.4%.
It comes at a time when food costs are under increasing scrutiny.
In November, the Government ordered the Commerce Commission to conduct a yearlong inquiry into grocery prices.
The main focus of the investigation will be the experience of the consumer, but it will also look at the way that supermarkets procure their goods.
Horticulture NZ chief executive Mike Chapman said that could lead to an unexpected outcome: fruit and vegetable prices might have to rise to meet the real costs of producing them. — RNZ