Food Price Index: April 2009

Commentary

Food prices in April 2009

Food prices decreased 0.6 percent in April 2009, following increases of 0.5 percent in March 2009 and 0.2 percent in February 2009.

In April 2009, lower prices were recorded for the following subgroups: fruit and vegetables (down 2.0 percent), grocery food (down 0.4 percent), meat, poultry and fish (down 0.8 percent), and non-alcoholic beverages (down 0.9 percent). Higher prices were recorded for the restaurant meals and ready-to-eat food subgroup (up 0.4 percent).

The most significant individual downward contributions came from lower prices for kiwifruit (down 54.8 percent), fresh chicken (down 3.4 percent), margarine (down 9.4 percent), and fresh milk (down 1.5 percent).

The most significant individual upward contributions came from higher prices for tomatoes (up 26.2 percent), yoghurt (up 9.9 percent), and chocolate bars and blocks (up 6.4 percent).

Index Points Contribution to Food Price Index

Monthly Index Points Contribution 
Subgroup February 2009 to March 2009 March 2009 to April 2009
Fruit and vegetables
Meat, poultry and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food
2.58
2.79
-1.14
0.83
0.51
-3.18
-1.68
-1.94
-1.09
0.88
Food Price Index 5.58 -7.01

Note: Index points contributions may not sum to totals due to rounding.

Distribution of item-level movements

The table below outlines the distribution of price movements in April 2009 and March 2009. The Food Price Index (FPI) has been partitioned into those national item-level indexes that increased, showed no change, or decreased. 

Distribution of Item-level Index Movements
National item-level index movements February 2009 to March 2009 March 2009 to April 2009
Increase in price
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent)
84
53.5
54.2
23.0
3.6
77
49.0
51.5
14.4
2.4
No change in price
 Number of items
Percentage of all items
Percentage of expenditure weight
1
0.6
0.1
2
1.3
0.4
Decrease in price
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent)
72
45.9
45.7
-17.4
3.2
78
49.7
48.1
-21.4
3.8

 

The distribution of item-level movements shows that:

  • The percentage of expenditure weight of items that increased in price fell, while the percentage of expenditure weight of items that decreased in price rose.
  • The weighted average price increase fell and the the weighted average price decrease rose.
  • The weighted average price decrease is now greater than the weighted average price increase.

These movements resulted in a 0.6 percent decrease in the April 2009 FPI, compared with a 0.5 percent increase in March 2009.

Annual movements

Food prices increased 7.6 percent in the year to April 2009, following increases of 8.6 percent and 8.8 percent in the years to March and February 2009, respectively. The increase for the year to April 2009 is the smallest since July 2008 when prices also increased 7.6 percent for the year.

All five of the food subgroups increased in the year to April 2009. The most significant upward contribution came from the grocery food subgroup (up 6.7 percent), followed by the meat, poultry and fish (up 11.5 percent), fruit and vegetables (up 9.9 percent), restaurant meals and ready-to-eat food (up 5.2 percent), and non-alcoholic beverages (up 7.5 percent) subgroups.

Within these subgroups, the most significant upward contributions came from higher prices for ready-to-eat food (up 5.3 percent), bread (up 12.8 percent), beef (up 12.5 percent), and soft drinks (up 7.2 percent).

The most significant downward contributions came from lower prices for cheddar cheese (down 15.7 percent) and tomatoes (down 15.8 percent).

Annual Index Points Contribution 
Subgroup April 2008 to April 2009 
Grocery food
Meat, poultry and fish
Fruit and vegetables
Restaurant meals and ready-to-eat food
Non-alcoholic beverages
 28.34
20.96
13.47
12.23
8.02
Food Price Index  83.02

Note: Index points contributions may not sum to totals due to rounding.

Fruit and vegetables

Prices for the fruit and vegetables subgroup fell 2.0 percent in April 2009, following an increase of 1.6 percent in March 2009 and a decrease of 2.6 percent in February 2009. In April 2009 fruit prices decreased 3.5 percent and vegetable prices decreased 0.7 percent.

The most significant downward contribution came from lower prices for kiwifruit (down 54.8 percent). Kiwifruit is coming into season, and large price falls are usual in April and May. The April 2009 decrease is the biggest since May 2004. Other significant contributions came from carrots (down 13.3 percent), broccoli (down 17.2 percent), and lettuce (down 6.7 percent).

The most significant upward contributions came from higher prices for tomatoes (up 26.2 percent) and bananas (up 5.8 percent).

For the year to April 2009, fruit and vegetable prices increased 9.9 percent. The most significant individual upward contributions came from higher prices for bananas (up 21.8 percent) and oranges (up 59.2 percent). The most significant downward contribution came from tomatoes (down 15.8 percent).

Fruit and Vegetables Subgroup

Fruit And Vegetables and Food Price Index

Grocery food

Prices for the grocery food subgroup decreased 0.4 percent in April 2009, following a decrease of 0.2 percent in March 2009 and an increase of 0.3 percent in February 2009.

The most significant downward contributions came from lower prices for margarine (down 9.4 percent), fresh milk (down 1.5 percent), and cheddar cheese (down 4.8 percent). The fall in margarine prices is largely due a high incidence of margarine going on special in April.

The most significant upward contributions came from higher prices for yoghurt (up 9.9 percent) and chocolate bars and blocks (up 6.4 percent).

In April 2009, 24.6 percent of surveyed grocery food prices decreased and 24.8 percent increased. The proportion of items that decreased in price and went 'on special' (20.1 percent of collected grocery food prices) was greater than the proportion of items that increased in price and went 'off special' (12.1 percent).

For the year to April 2009, grocery food prices increased 6.7 percent. The most significant individual upward contributions came from higher prices for bread (up 12.8 percent), cakes and biscuits (up 12.3 percent), yoghurt (up 17.3 percent), and rice (up 44.9 percent). The most significant downward contributions came from lower prices for cheddar cheese (down 15.7 percent) and butter (down 15.9 percent).

Grocery Food Subgroup

Grocery Food Subgroup and Food Price Index

Meat, poultry and fish

Prices for the meat, poultry and fish subgroup fell 0.8 percent in April 2009, following increases of 1.4 percent in March 2009 and 0.8 percent in February 2009.

The most significant downward contribution came from lower prices for fresh chicken (down 3.4 percent), fresh fish (down 4.3 percent), and cooked chicken (down 5.3 percent).

The most significant upward contribution came from lamb (up 4.5 percent).

For the year to April 2009, prices for the meat, poultry and fish subgroup increased 11.5 percent. The most significant upward contribution came from higher prices for beef (up 12.5 percent), fresh chicken (up 11.9 percent), and bacon (up 19.9 percent).

Meat poultry And Fish Subgroup

Meat Poultry and Fish Subgroup and Price Index

Other subgroups

In April 2009, the non-alcoholic beverages subgroup fell 0.9 percent, and the restaurant meals and ready-to-eat food subgroup rose 0.4 percent.

Within these subgroups, the most significant downward contribution came from lower prices for soft drinks (down 1.0 percent).

The most significant upward contribution came from ready-to-eat food (up 0.3 percent).

For the year to April 2009, prices increased 5.2 percent for the restaurant meals and ready-to-eat food subgroup, and 7.5 percent for the non-alcoholic beverages subgroup.

Selected Subgroups and Food Price Index

 

For technical information contact:
Russell Hewitt or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz

Next release ...

Food Price Index: May 2009 will be released on 12 June 2009.