A Kiwi food price report marks the first annual decline in nearly six years, signalling a departure from the persistent upward trend seen since August 2018.
The decline in food prices was primarily driven by substantial drops in the cost of tomatoes, cheese, and potatoes, according to consumer prices manager James Mitchell. Fruit and vegetable prices saw the most significant decrease, plummeting by 16.1 per cent over the year, reflecting a notable retreat from the record-high levels observed in June 2023.
However, not all food categories followed suit. Prices in all other broad food groups increased during the same period, underscoring the complex dynamics at play in New Zealand’s food market.
Despite the annual decline, food prices rose by 1 per cent in June compared to May 2024, highlighting monthly fluctuations that can influence overall consumer spending patterns.
On a monthly basis, fruit and vegetable prices saw a 2.3 per cent increase, contributing to the overall monthly rise in food costs. Mitchell pointed out that while June 2024 prices were lower than those in June 2023, the trend of cheaper food prices over the past year has been consistent, with only one month out of the last twelve showing an increase.
The broader economic landscape also saw notable price movements in other sectors. Notably, the cost of eating out or opting for takeaways rose by 4 per cent over the year, emphasising contrasting trends between home-cooked meals and dining out.
Inflation pressures persist in other sectors as well. Transport costs, including petrol prices, remained elevated, rising by 11.6 per cent over the past year despite a slight 4.6 per cent dip in the last month. Accommodation costs, specifically rents, also continued their upward trajectory, increasing by 4.5 per cent annually and 0.3 per cent month-on-month.
Today’s release from Stats NZ’s Selected Price Index, which covers approximately 45 per cent of the full Consumer Price Index, provides a snapshot of the economic challenges and opportunities facing New Zealanders. Analysts are eagerly awaiting next week’s comprehensive Consumer Price Index report, expected to provide deeper insights into the country’s inflation trends and their broader economic implications.
As New Zealand navigates these economic fluctuations, understanding the dynamics of food prices and their impact on household budgets remains crucial for policymakers and consumers alike in managing the cost of living.
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