Fruit, vegetables lead food prices down
New Zealand food prices fell in November, driven by a seasonal fall in fruit and vegetables. The biggest fall was strawberries, with prices tumbling 33 per cent on the month and 5 per cent compared to this time last year.
Food prices fell 0.6 per cent versus October and after seasonal adjustment were down 0.2 per cent, Statistics New Zealand said.
Fruit and vegetable prices fell 3.6 per cent. While strawberry prices fell, banana prices rose 17 per cent over the month due to a delayed shipment, which reduced supply and pushed up prices, Stats NZ said.
“Bananas are a consistently cheap, versatile fruit that’s available all year round,” consumer prices manager Geraldine Duoba said. “This makes them New Zealand’s most popular fruit, making up about 17 per cent of all spending on fruit.”
Meat, poultry and fish prices were down 0.4 per cent, largely due to a 3.7 per cent fall in poultry prices.
Grocery food prices were flat but non-alcoholic beverage prices fell 1.2 per cent as prices for coffee, tea and other hot drinks eased. Restaurant meals and ready-to-eat food prices, meanwhile, rose 0.2 per cent.
Over the year, food prices lifted 0.4 per cent, weighed by a 6.7 per cent fall in fruit and vegetable prices.
Tomatoes and strawberries were 18 per cent and 5 per cent cheaper, respectively, in November 2018 than they were a year ago, Stats NZ said.
“Now is a really good time to buy tomatoes, as well as broccoli and lettuce,” Duoba said. “Prices for these vegetables tend to stay low as we head into summer.”
However, meat, poultry and fish prices lifted 3.2 per cent.
The food price index accounts for about 19 per cent of the consumers price index, which is the Reserve Bank’s mandated inflation target when setting interest rates.
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