NZ food prices fall 0.5% in August driven down by dairy

NZ food prices fall 0.5% in August as dairy products drive drop in grocery, meat declines

Sept. 11 (BusinessDesk) - New Zealand food prices declined in August, as weaker prices for cheese, butter and fresh milk drove down the price of groceries, and meat prices fell, making up for stronger fruit and vegetable prices.

The food price index fell 0.5 percent in August from July, following two months of gains, Statistics New Zealand said. The decline was 0.4 percent on a seasonally adjusted basis. Prices were up 0.4 percent compared with August last year.

Grocery prices fell 1.8 percent in August, following a 0.1 percent decline in July, reflecting a 7.7 percent decline in the price of cheese, a 13 percent drop in butter prices and a 0.6 percent fall in the price of fresh milk, the government statistician said. The decline for cheese was influenced by discounting, while prices rose for chocolate and bread.

Meat, poultry and fish prices also fell 1.8 percent, led by a 3.6 percent decline for chicken, a 2 percent decline for processed meat and a 2.4 percent decline for beef. Fruit and vegetable prices rose 3.1 percent in August, led by a 4.6 percent gain for vegetables, although that reverses to a 0.4 percent decline when seasonally adjusted.

The price of bananas rose 8.9 percent, reflecting a supply shortage late in the month.

(BusinessDesk)

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