Fruit and vegetables drive up annual food prices

Annual food prices rose 6.8 percent in February 2022 compared with February 2021, Stats NZ said today.

This was the largest annual increase since July 2011 when prices increased 7.9 percent.

In February 2022 compared with February 2021:

• fruit and vegetable prices increased by 17 percent
• grocery food prices increased by 5.4 percent
• restaurant meals and ready-to-eat food prices increased by 5.2 percent
• meat, poultry, and fish prices increased by 7.1 percent
• non-alcoholic beverage prices increased by 2.3 percent.

“Fruit and vegetables were the largest contributor to the annual movement, mainly influenced by tomatoes, broccoli, and iceberg lettuce,” food prices lead analyst Angus Crowe said.

Two-litre bottles of standard milk, eat-in lunch meals, and 1-kilo blocks of mild cheese also contributed to the annual increase. These were partly offset by decreasing prices for kumara, avocado, and crackers.

Small fall in monthly food prices

Monthly food prices fell 0.1 percent in February 2022. This fall follows a 2.7 percent rise in January 2022.

After removing regular seasonal impacts, food prices rose 0.4 percent in February 2022.

“Fruit and vegetables were the main contributor to the fall in February, down 0.7 percent,” Mr Crowe said.

“This was mainly influenced by lower prices for tomatoes, apples, and potatoes.”

Grocery food (down 0.2 percent) and non-alcoholic beverage prices (down 0.3 percent) also contributed to the fall.

Restaurant meals and ready-to-eat food prices rose 0.3 percent, while meat, poultry, and fish prices rose 0.1 percent.