Food prices edge up in March

Food prices increased 0.2 per cent in the March 2010 month, Statistics NZ has said. This increase follows a 1.3 per cent fall in February and a 2.1 per cent rise in January.

In March 2010, the meat, poultry, and fish subgroup increased 1.3 per cent. This was largely driven by higher prices for porterhouse/sirloin steak (up 17.7 per cent) and fresh chicken (up 5.0 per cent). Porterhouse/sirloin steak prices have rebounded since February, when extensive discounting led to a 17.6 per cent fall.

Fruit and vegetable prices fell 1.9 per cent in March 2010, with prices for apples falling 19.6 per cent. Apple prices typically fall by about 20 per cent in February and by a further 20 per cent in March, as the new season’s crop becomes more widely available. This fall was partly offset by higher prices for lettuce (up 21.2 per cent).

For the year to March 2010, food prices rose 0.3 per cent. This is the smallest annual increase since the year to July 2004, when prices fell 0.1 per cent.

In the year to March 2010, three subgroups recorded increases: grocery food (up 1.1 per cent), restaurant meals and ready-to-eat food (up 2.3 per cent), and non-alcoholic beverages (up 2.2 per cent).

Prices for fruit and vegetables (down 5.3 per cent) and meat, poultry, and fish (down 0.3 per cent) fell in the year to March 2010.

Annual falls in the fruit and vegetables subgroup have now been recorded for eight consecutive months.

“Although food prices are now 0.3 per cent higher than a year ago, they are 8.9 per cent higher than two years ago,” Statistics NZ’s prices manager Chris Pike said.