Bill English National Finance Spokesman
14 June 2001
Food price rises hit 11 year high
Low and fixed income families are feeling the pain after a 6.2 percent increase in food prices in the year to May,
National's Finance spokesman Bill English said today.
"Nearly two thirds of the food items measured in the Food Price Index increased in price during May, with an overall
rise of 0.3 percent for the month.
"The increase in the year to May is the highest in over a decade, and low income families are really suffering. They've
had to get through the last year with an average wage increase of around 2.5 percent, with half of those families
getting no wage increase at all. Those household budgets are now stretched to breaking point.
"The possibility of major electricity price rises will only add to the uncertainty many low and fixed income families
are now feeling because of this significant rise in food prices," Bill English said.
Ends