The price of fresh milk rose 9.3% in the 12 months to April, while overall food prices rose 6.1%, the highest annual increase since July 2009, figures released by Statstics New Zealand show.
The annual price rises included a 2.2% rise due to the GST hike on October 1 last year, which the government says was compensated for by the lowering of income taxes.
"In the year to April 2011 all subgroups made upward contributions, with the most significant coming from grocery food (up 5.8 percent). Fruit and vegetables (up 8.7 percent), meat, poultry, and fish (up 6.0 percent), restaurant meals and ready-to-eat food (up 4.6 percent), and non-alcoholic beverages (up 7.6 percent) also increased," Statistics New Zealand said.
"Within these subgroups, the most significant upward contributions in the year to April 2011 came from higher prices for fresh milk (up 9.3 percent) and lamb (up 23.8 percent)," Stats NZ said.
Despite the annual 9.3% rise, fresh milk prices fell 0.2% in the month of April, after the same drop in March.
General food prices were flat (up 0.1 percent) in the April 2011 month
"The most significant increase in April 2011 came from the grocery food subgroup (up 1.0 percent). This increase was influenced by higher prices for margarine (up 12.8 percent, reflecting a reduction in the level of discounting) and bread (up 2.1 percent). "Bread prices are now 4.6 percent higher than at an earlier peak in May 2009," Statistics NZ prices manager Chris Pike said.
"Fruit and vegetable prices fell 3.3 percent in April 2011. This was influenced by price falls for lettuce (down 15.8 percent) and kiwifruit (down 27.4 percent). Kiwifruit prices usually fall in April as the new season's crop becomes available."
ASB economist Christina Leung said food prices were likely to become a key 'inflation story' over the year.
"While overall food prices were subdued in April, this was largely due to declines in fruit and vegetable prices. Over the past year, food price inflation has picked up with annual growth of 3.9% excluding the effects of the GST increase last year. While this is well below the double digit growth seen in late 2008, the growing momentum in price growth of groceries, restaurant & takeaways suggests food prices is likely to become a key inflation story over the coming year," Leung said.
(Updates ASB comment, with monthly movements.)
3 Comments
The outcome not factored into the govts wee plan is the extent to which the peasants are altering their lifestyles when it comes to food....they are growing shooting and catching their own...and bugger the gst.
NZ is moving to be a nation of veggy gardners dressed in rags. Not Sir Humphrey..no sirreee....all new suits and ties there...musn't scuff the leather shoes either. Well I mean, one has to look like one is being paid half a million every year...right!
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