Food prices in August 2009
Food prices fell 0.9 percent in August 2009, following increases of 0.6 percent and 2.8 percent in July and June 2009, respectively. This is the largest fall in the FPI since a 0.9 percent fall in February 2006.
In August 2009, lower prices were recorded for the following subgroups: grocery food (down 1.3 percent), fruit and vegetables (down 3.3 percent), and meat, poultry and fish (down 0.4 percent). Higher prices were recorded for the restaurant meals and ready-to-eat food (up 0.3 percent) and non-alcoholic beverages (up 1.0 percent) subgroups.
The most significant individual downward contributions came from lower prices for fresh chicken (down 9.1 percent), tomatoes (down 10.0 percent), strawberries (down 21.7 percent), bread (down 2.7 percent), and broccoli (down 21.8 percent).
The most significant upward contributions came from higher prices for lamb (up 4.6 percent), soft drinks (up 1.3 percent), and pork (up 6.2 percent).
| Monthly Index Points Contribution |
| Subgroup |
June 2009 to
July 2009 |
July 2009 to
August 2009 |
Fruit and vegetables
Meat, poultry and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
5.40
-1.55
2.42
0.31
0.80 |
-5.96
-0.85
-6.32
1.19
0.65 |
| Food price index |
7.38 |
-11.29 |
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 August 2009 and July 2009. The 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 |
June 2009 to
July 2009 |
July 2009 to
August 2009 |
| Increase in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent) |
93
59.2
58.1
21.2
3.0 |
81
51.6
51.1
11.1
1.8 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
2
1.3
1.0 |
4
2.5
0.8 |
| Decrease in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent) |
62
39.5
40.9
-13.8
2.8 |
72
45.9
48.2
-22.3
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 weighted average price decrease rose.
- the weighted average price decrease is twice as large as the weighted average price increase.
These movements resulted in a 0.9 percent decrease in the August 2009 FPI, compared with a 0.6 percent increase in July 2009.
Annual movements
Food prices increased 4.6 percent in the year to August 2009, following increases of 8.4 percent for the years to both July and June 2009. The latest annual increase is the lowest annual increase since a 4.4 percent rise in the year to January 2008.
Four of the food subgroups increased in the year to August 2009. The most significant upward contributions came from higher prices for grocery food (up 4.4 percent) and meat, poultry and fish (up 9.2 percent), followed by non-alcoholic beverages (up 7.9 percent), and restaurant meals and ready-to-eat food (up 3.7 percent).
The only subgroup to decrease was fruit and vegetables (down 1.1 percent). Vegetable prices were down 5.1 percent, while fruit prices rose 7.0 percent.
The most significant upward contributions came from higher prices for soft drinks (up 9.1 percent) and bread (up 10.0 percent).
Within these subgroups, the most significant downward contributions came from lower prices for lettuce (down 15.9 percent) and cheddar cheese (down 21.1 percent).
| Annual Index Points Contribution |
| Subgroup |
August 2008 to
August 2009 |
Grocery food
Meat, poultry and fish
Non-alcoholic beverages
Restaurant meals and ready-to-eat food
Fruit and vegetables |
19.26
17.25
9.02
8.57
-1.77 |
| Food price index |
52.33 |
Note: Index points contributions may not sum to totals due to rounding.
Grocery food
Prices for the grocery food subgroup decreased 1.3 percent in August 2009, following increases of 0.5 percent and 1.1 percent in July and June 2009, respectively. The 1.3 percent fall is the largest monthly decrease for the grocery food subgroup since the series began in June 1999.
In August 2009, 24.3 percent of surveyed grocery food prices decreased and 21.9 percent increased. The proportion of surveyed prices that decreased and went 'on special' (18.5 percent of collected grocery food prices) was greater than the proportion that increased in price and went 'off special' (12.4 percent).
The most significant downward contributions came from lower prices for bread (down 2.7 percent), chocolate biscuits (down 6.3 percent), and cheddar cheese (down 6.2 percent). Bread had its largest fall since a 2.8 percent drop in July 2007. From late 2007, prices rose by more than a third to reach the record high prices recorded in May, June and July 2009. In August 2009, prices for cheddar cheese, fresh milk, and butter returned to the levels last seen in late 2007 or early 2008. Fresh milk prices fell for the second month in a row.
For the year to August 2009, grocery food prices increased 4.4 percent. This is the lowest annual increase since September 2007. The most significant upward contributions for the year to August 2009 came from higher prices for bread (up 10.0 percent) and yoghurt (up 19.7 percent). The most significant downward contributions came from lower prices for cheddar cheese (down 21.1 percent), fresh milk (down 4.8 percent), and butter (down 29.6 percent).
Fruit and vegetables
Prices for the fruit and vegetables subgroup decreased 3.3 percent in August 2009, following increases of 3.1 percent and 15.0 percent in July and June 2009, respectively. This is in contrast to a 9.6 percent increase for August 2008, when growing conditions were hampered by unusually wet weather, but similar to a 3.0 percent decrease for August 2007.
The most significant downward contributions came from lower prices for tomatoes (down 10.0 percent), strawberries (down 21.7 percent), broccoli (down 21.8 percent), and avocados (down 25.0 percent).
Lettuce prices fell 3.3 percent in August 2009, and are down 15.9 percent from their high point in August 2008.
For the year to August 2009, fruit and vegetable prices decreased 1.1 percent, with vegetables down 5.1 percent, and fruit up 7.0 percent. The most significant downward contributions came from lower prices for lettuce (down 15.9 percent) and potatoes (down 14.0 percent). The most significant upward contribution came from higher prices for bananas (up 14.7 percent).
Other subgroups
Lower prices were recorded for the meat, poultry and fish subgroup (down 0.4 percent), and higher prices were recorded for the restaurant meals and ready-to-eat food (up 0.3 percent), and non-alcoholic beverages (up 1.0 percent) subgroups.
The meat, poultry and fish subgroup has decreased for two months in a row from its record high in June 2009.
Within these subgroups, the most significant downward contribution in the latest month came from lower prices for fresh chicken (down 9.1 percent), influenced by significant specialling. The most significant upwards contributions came from higher prices for lamb (up 4.6 percent), soft drinks (up 1.3 percent), and pork (up 6.2 percent). The increase in soft drinks was largely driven by price increases for small bottles of soft drink, with some coming off special in August 2009.
For technical information contact:
Louis Liu or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: September 2009 will be released on 15 October 2009.