Annual food price inflation slowed further in April as food prices decreased 0.6% from March, Statistics New Zealand (Stats NZ) said on Tuesday morning. Annual food price inflation was 7.6% from April 2008, down from a high of 10.8% in September last year and 8.6% in March. The latest figures will help reassure the Reserve Bank that its forecasts of slowing inflation will give it room to keep the Official Cash Rate at or below 2.50% over the next 18 months. April was the first month in 2009 to record an overall decrease in food prices from the previous month. Fruit and vegetable prices showed a decrease of 2% from March, but prices were still up 10% from the year before. Meat, poultry and fish prices fell 0.8%, but were still up 11.5% from April 2008, while grocery food prices fell 0.4% over the month and were up 6.7% from a year ago. The 'restaurant and ready-to-eat meals' subgroup was the only one to experience a price rise from March, up 0.4%, with annual growth of 5.2%. There were four items that showed price decreases in April from the year before, all in the grocery food group. Fresh milk prices were down 0.5%, cheese prices were down 8.2%, and egg prices were down 4.9%. Oils and fats prices were down 1.2%.
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