New Zealand food prices drop sequentially in April, rise slightly year-on-year

The overall food prices in New Zealand dropped further in April. According to Statistics New Zealand, the food prices fell 0.8 percent in the month, as compared with the drop of 0.3 percent in the prior month. The cost of grocery foods dropped in the month, partially offset by increased prices for vegetables.

"The cost of throwing a party fell in April, with lower prices for grocery foods such as potato chips, chocolate biscuits, and crackers. Other party favourites, such as soft drinks, grapes, and carrots, also fell in price," said consumer prices manager Matthew Haigh.

Prices of fruit and vegetable were up 4.2 percent, with vegetable prices rising 10 percent but fruit prices falling 0.3 percent. Prices of vegetable were influenced by some seasonal rises and heavy rain impacting some crops. The biggest positive contributors were mostly salad items, with increased prices for lettuce, tomatoes, cucumber and avocados, stated Haigh.

On a year-on-year basis, annual food prices rose 0.2 percent in April, driven by restaurant meals and ready-to-eat food. This is a slowdown from 1.3 percent and 2.2 percent rise in March and February respectively. Restaurant meals and ready-to-eat food prices rose 1.9 percent year-on-year. The annual rise was partially countered by lower prices of non-alcoholic beverages.

Meanwhile, prices of fruit and vegetables rose 3 percent year-on-year. Vegetable prices were up 8.1 percent, driven by higher prices for broccoli, lettuce and kumara. Prices for fruit dropped 3.5 percent, driven by lower prices for avocado.