Stats NZ has released figures indicating that the annual inflation rate has remained high at 7.2%. This is the highest level in 32 years, with key drivers being food prices, rent and maintenance, and building costs.
For the consumer having to spend more on foodstuffs, the rising food prices have become a key concern. Some have voiced their struggle with having to still provide healthy meals for the family at a time when even the cost of fruits and vegetables has gone up.
This latest report indicates that food costs were a key driver of the inflation rate, having risen by 2.7% in January. After excluding seasonal effects, food prices were found to have risen by 1.1%. Primary contributors to the rise were the increased pricing of fruit and vegetables, restaurant and takeaway meals, international airfares, and building costs.
A wide variety of fruits and vegetables were found to have drastically risen in price. This included kiwi fruit which has risen in price by 74% over the year, while cabbage increased in price by 61%. Tomatoes, broccoli, lettuce, strawberries, and apple prices also rose drastically in January. Categorically, fruit prices rose by 2.7% while vegetable prices increased by 5.9%. This appreciation was however partially offset by a decline in the price of other produce like grapes, courgettes, and beans.
Part of the problem has been linked to the increasing challenges that growers are facing. Cropping problems and disease were identified as contributors. Additional costs were also being faced from the supply chain. Labour shortages were also found to be making harvests more difficult to complete, particularly for produce like apples that have a limited window.
Shoppers at a Papakura supermarket expressed hope that the government would consider removing the goods and services tax (GST) on fruit and vegetables. They also suggested the use of price controls to limit the impact of rising food prices. Some vendors also said they would likely need to increase their product prices to recover the increased costs they were now being subjected to and keep making a living.
Building costs were affected by the increased labour and materials costs. Consumer prices senior manager at Stats NZ, Nicola Growden, said that 72% of the items used to track inflation had risen in price hence the high result. Household costs were also found to have risen by 8%. The only offset against this rise was the decline in petrol prices which fell by 7.2%.
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