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Food price inflation easing, but slowly; cheese up 4.8% while wholesale price down 46%
Monthly food price inflation blipped back up again in January as big jumps in tomato and kiwifruit prices added to surprising increases in cheese, pasta, bread and pork despite lower commodity and fuel prices.
The figures suggest the fall in oil and dairy commodity prices is not being passed on to consumers quickly or at all in some cases by manufacturers and retailers. See our dairy price chart below to confirm.
This makes the Reserve Bank's job of keeping inflation down a little harder and will disappoint many consumers hoping the lower wholesale petrol, cheese and butter prices might reduce their shopping bills.
Food prices increased 9.5% in the year to January 09 and were up 0.8% for the month of January, Statistics NZ said. Food prices had fallen in two of the last 3 months and economists had expected a more moderate rise.
BNZ's economists had forecast a 0.5% rise for the month.
The biggest increase comes from fruit and vegetables, which rose 3.6%. Some of the largest jumps were tomatoes up 49.5%, kiwifruit up 48.2%, and mandarins up 37.3%.
Other subgroups to rise included non-alcoholic beverages up 2.2%, grocery food up 0.4% and restaurant meals and ready-to-eat food up 0.4%.
The only fall was from meat, poultry and fish, down 0.6% with lamb significantly down 9.6%. Pork prices are up 21.7% from a year ago, despite falling feed and fuel prices.
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The milk, cheese and egg price sub group rose 0.3%, with cheese up 1.7% for the month and still up 4.8% from a year earlier, even though wholesale cheese prices have fallen 46%.
This follows data recently released for 2008 that the national sheep flock was 12 percent lower than in 2007. At 34 million, it was less than half the 70 million recorded in 1982 when sheep numbers peaked, says a Statistic NZ announcement.
The January food price figures follow a decrease in the month of December 08 of 0.2%.
4 Comments
YES cheese up i just
YES cheese up i just saw in woolworths $4 per kilo increase go figure.
easy solution, don't buy as
easy solution, don't buy as much as you used to, or better buy none for just a few weeks and see what happens then!
Fully agree with ctnz -
Fully agree with ctnz - see what has been happening to oil ?
Cut demand (at least for the short term), they will suffer and that will force them to bring the price down..
Where is the competition watchdog
Where is the competition watchdog In NZ? What stops the oligipoly of the 2 NZ Food retails indirectly colluding to create higher prices.
For that matter what stops all petrol stations simultaneously putting prices up.
Who has the teeth to fine and keep the market leaders in place?
I know New Zealand is a tiny economic community relative to other markets but I believe this country is crying out for a regulator with teeth. The commerce commission has this to say on business competition
'The purpose of the Commerce Commission is to promote dynamic and responsive markets so that New Zealanders benefit from competitive prices, better quality and greater choice.'.....Really!!
It's an easy win for a political party to push this as policy as consumers will benefit and resulting lower inflation will allow further economic stimulation.
" Who has the teeth
" Who has the teeth to fine and keep the market leaders in place ? "
No ones got any teeth left, cause they can't afford to buy food with any calcium in it.
Spring, in temperate regions, is
Spring, in temperate regions, is when food is in lowest supply (having exhausted the winter store, and not yet producing new food), and therefore we can look forward to food prices hiking up a bit more over the next few months (i.e. the northern hemisphere's spring, our autumn); 'cos we export most of our food, and compete with the international price for the stuff that does stay. It is a wonderful way to beckon in winter - underfed, and so immuno-compromised !
Mind you, all this is assuming people out there in the big wide world have money to buy our food.....
Plant your vegie garden now!
Price of food is rising
Price of food is rising rapidly,especially flour and rice has more than doubled in price.Hype of bio-fuel may be the cause.