Food prices in April 2010
Food prices decreased 0.5 percent in April 2010, following an increase of 0.2 percent in March and a decrease of 1.3 percent in February. Prices have returned to levels last recorded in late 2009.
In April 2010, lower prices were recorded for the following subgroups: meat, poultry, and fish (down 2.6 percent), fruit and vegetables (down 1.7 percent), and non-alcoholic beverages (down 0.5 percent). Restaurant meals and ready-to-eat food prices were unchanged and grocery food (up 0.7 percent) was the only subgroup to increase.
The most significant individual downward contributions came from lower prices for fresh chicken (down 4.7 percent), kiwifruit (down 36.4 percent), and coffee (down 9.5 percent).
The most significant upward contributions came from higher prices for soft drinks (up 1.9 percent), snack foods (up 4.1 percent), and strawberries (up 22.4 percent).
| Monthly Index Points Contribution |
| Subgroup |
Feb 2010 to Mar 2010 |
Mar 2010 to Apr 2010 |
Fruit and vegetables
Meat, poultry, and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
-2.84
2.56
1.31
0.59
0.68 |
-2.67
-5.46
3.17
-0.59
0.01 |
| Food price index |
2.30 |
-5.54 |
Note: Index points contributions may not sum to total due to rounding. |
Distribution of item-level movements
The table below outlines the distribution of price movements in March 2010 and April 2010. 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 |
Feb 2010 to Mar 2010 |
Mar 2010 to Apr 2010 |
| Increase in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent) |
82
52.2
56.4
19.9
3.0 |
67
42.7
43.1
13.6
2.7 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
4
2.5
0.8 |
4
2.5
1.6 |
| Decrease in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent) |
71
45.2
42.8
-17.6
3.5 |
86
54.8
55.3
-19.1
2.9 |
The distribution of item-level movements shows that:
- The percentage of expenditure weight of items that decreased in price rose, while the percentage of expenditure weight of items that increased in price fell.
- The percentage of expenditure weight of items that decreased in price is now more than the percentage of expenditure weight of items that increased in price.
These movements resulted in a 0.5 percent decrease in the April 2010 FPI, following a 0.2 percent increase in March 2010.
The movement this month is negative due to a smaller contribution from items that rose in price.
Annual movements
Food prices increased 0.4 percent in the year to April 2010, following increases of 0.3 percent and 0.7 percent for the years to March 2010 and February 2010, respectively.
Three subgroups increased in the year to April 2010: grocery food (up 2.3 percent), restaurant meals and ready-to-eat food (up 1.9 percent), and non-alcoholic beverages (up 2.7 percent). The contribution from grocery food is more than those from restaurant meals and ready-to-eat food and non-alcoholic beverages combined.
The fruit and vegetables subgroup decreased 5.0 percent while the meat, poultry, and fish subgroup decreased 2.2 percent.
The most significant individual upward contributions came from higher prices for soft drinks (up 8.2 percent), fresh milk (up 4.5 percent), and sausages (up 11.9 percent).
The most significant individual downward contributions came from lower prices for lettuce (down 23.5 percent) and fresh chicken (down 4.6 percent).
Although food prices are now 0.4 percent higher than a year ago, they are 8.1 percent higher than two years ago.
| Annual Index Points Contribution |
| Subgroup |
April 2009 to April 2010 |
Grocery food
Restaurant meals and ready-to-eat food
Non-alcoholic beverages
Meat, poultry, and fish
Fruit and vegetables |
10.28
4.64
3.20
-4.50
-7.86 |
| Food price index |
5.75 |
| Note: Index points contributions may not sum to total due to rounding. |
Meat, poultry, and fish
Prices for the meat, poultry, and fish subgroup decreased 2.6 percent in April 2010, following an increase of 1.3 percent in March and a decrease of 2.4 percent in February.
The most significant downward contributions came from beef (down 4.5 percent), fresh chicken (down 4.7 percent), and lamb chops (down 9.0 percent). All of these items were influenced by discounting.
For the year to April 2010, meat, poultry, and fish prices decreased 2.2 percent. The most significant downward contributions came from lower prices for fresh chicken (down 4.6 percent), minced beef (down 6.6 percent), and ham (down 8.6 percent). The most significant upward contribution came from higher prices for sausages (up 11.9 percent).
Fruit and vegetables
Prices for the fruit and vegetables subgroup fell 1.7 percent in April 2010, following decreases of 1.9 percent and 3.5 percent in March and February, respectively. In April 2010, vegetable prices fell 2.7 percent and fruit prices fell 0.5 percent.
The most significant downward contributions came from lower prices for kiwifruit (down 36.4 percent), broccoli (down 15.1 percent), and potatoes (down 4.8 percent). Kiwifruit prices typically fall in April when the new season's crop becomes available, and they fell 54.8 percent in April 2009. Kiwifruit prices are now 1.5 percent higher than in April 2009.
The most significant upward contributions came from higher prices for strawberries (up 22.4 percent) and mandarins (up 15.3 percent). Strawberry prices increase in March and April as the season ends, but prices are now 14.9 percent lower than in April 2009.
For the year to April 2010, fruit and vegetable prices decreased 5.0 percent. Annual falls for fruit and vegetable prices have now been recorded for nine consecutive months. The most significant downward contributions came from lower prices for lettuce (down 23.5 percent), potatoes (down 11.4 percent), and oranges (down 25.2 percent).
Other subgroups
In April 2010, higher prices were recorded for the grocery food subgroup (up 0.7 percent). The restaurant meals and ready-to-eat food subgroup was unchanged. The non-alcoholic beverages subgroup decreased 0.5 percent.
Within these subgroups, the most significant upward contributions came from higher prices for soft drinks (up 1.9 percent), snack foods (up 4.1 percent), and chocolate biscuits (up 7.7 percent). The most significant downward contribution came from lower prices for coffee (down 9.5 percent) with significant discounting for both instant and ground coffee.
Changes to the timing of the food price index
The FPI has usually been released nine working days after the month, except every third month, when it has been released with the quarterly consumers price index (CPI). For example, the March 2010 FPI was released with the March 2010 quarter CPI, 12 working days after the quarter.
Statistics New Zealand has reviewed this practice and will in future release each FPI on the ninth working day after the end of the month.
This change will take place for the June 2010 FPI, which will be released on 13 July. The June 2010 quarter CPI will be released on 16 July.
For technical information contact:
Jolene Chen or Russell Hewitt
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: May 2010 will be released on 11 June 2010.