Food prices in December 2008
Food prices fell 0.2 percent in December 2008, following an increase of 0.8 percent in November 2008 and a decrease of 0.3 percent in October 2008.
In December 2008, lower prices were recorded for the fruit and vegetables subgroup (down 3.9 percent) and the non-alcoholic beverages subgroup (down 1.0 percent). The restaurant meals and ready-to-eat food subgroup showed no change this month. Higher prices were recorded for the grocery food subgroup (up 0.9 percent), and the meat, poultry and fish subgroup (up 0.7 percent).
The most significant individual downward contributions came from lower prices for tomatoes (down 48.4 percent), broccoli (down 45.3 percent), minced beef (down 7.2 percent), and lettuce (down 17.7 percent).
The most significant individual upward contributions came from higher prices for apples (up 22.1 percent), bread (up 3.7 percent), fresh chicken (up 3.6 percent), and sausages (up 7.3 percent).
| Index Points Contribution |
| Subgroup |
October 2008 to
November 2008 |
November 2008 to
December 2008 |
Fruit and vegetables
Meat, poultry and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
-0.51
0.71
4.61
2.02
1.49 |
-6.33
1.32
4.12
-1.12
0.13 |
| Food Price Index |
8.32 |
-1.88 |
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 November and December 2008. 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 |
October 2008 to
November 2008 |
November 2008 to
December 2008 |
| Increase in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent) |
106
67.5
70.3
25.7
3.2 |
81
51.6
55.4
20.6
3.2 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
2
1.3
2.0 |
4
2.5
1.1 |
| Decrease in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent) |
49
31.2
27.6
-17.3
5.4 |
72
45.9
43.5
-22.5
4.5 |
The distribution of item-level movements shows that:
- the number of items that increased in price fell, while the number of items that decreased in price rose
- the percentage expenditure weight of items that increased in price fell sharply, while the percentage expenditure weight of items that decreased in price rose strongly
- the weighted average price decrease was greater than the weighted average price increase
These movements resulted in a 0.2 percent decrease in the December 2008 FPI, compared with a 0.8 percent increase in November 2008.
Annual movements
Food prices increased 9.1 percent in the year to December 2008, following increases of 10.3 percent and 9.9 percent in the years to November and October 2008, respectively.
All five of the food subgroups increased in the year to December 2008. The most significant upward contribution came from higher prices for the grocery food subgroup (up 11.0 percent), meat, poultry and fish (up 11.1 percent), restaurant meals and ready-to-eat food (up 6.1 percent), fruit and vegetables (up 8.7 percent), and non-alcoholic beverages (up 5.6 percent).
Within these subgroups, the most significant upward contributions came from higher prices for ready-to-eat food (up 6.9 percent), bread (up 20.2 percent), cakes and biscuits (up 14.0 percent), and restaurant meals (up 5.2 percent).
| Annual Index Points Contribution |
| Subgroup |
December 2007 to
December 2008 |
Grocery food
Meat, poultry and fish
Fruit and vegetables
Restaurant meals and ready-to-eat food
Non-alcoholic beverages |
44.91
20.06
14.46
11.70
5.53 |
| Food Price Index |
96.65 |
Note: Index points contributions may not sum to totals due to rounding.
Fruit and vegetables
Prices for the fruit and vegetables subgroup decreased 3.9 percent in December 2008, following decreases of 0.3 percent and 6.0 percent in November and October 2008, respectively. Vegetable prices decreased 9.8 percent in December 2008, while fruit prices increased 4.5 percent.
The most significant downward contributions came from lower prices for tomatoes (down 48.4 percent), broccoli (down 45.3 percent), lettuce (down 17.7 percent), and nectarines (down 15.6 percent).
The most significant upward contributions came from higher prices for apples (up 22.1 percent) and kiwifruit (up 27.8 percent).
For the year to December 2008, fruit and vegetable prices increased 8.7 percent. The most significant individual upward contributions came from higher prices for apples (up 38.1 percent), potatoes (up 29.7 percent), and carrots (up 69.4 percent). The most significant individual downward contribution came from lower prices for lettuce (down 10.7 percent).
Grocery food
Prices for the grocery food subgroup increased 0.9 percent in December 2008, following increases of 1.0 percent and 0.6 percent in November 2008 and October 2008, respectively.
The most significant upward contributions came from higher prices for bread (up 3.7 percent), and cakes and biscuits (up 2.2 percent).
The most significant downward contribution came from lower prices for boxed chocolates (down 11.9 percent), salted peanuts (down 5.9 percent), and cheddar cheese (down 3.1 percent).
For the year to December 2008, prices for the grocery food subgroup increased 11.0 percent. The most significant upward contributions came from higher prices for bread (up 20.2 percent), cakes and biscuits (up 14.0 percent), potato crisps (up 18.1 percent), fresh milk (up 5.5 percent), cheddar cheese (up 15.1 percent), and yoghurt (up 11.3 percent).
Other subgroups
In December 2008, lower prices were recorded for the non-alcoholic beverages subgroup (down 1.0 percent). The restaurant meals and ready-to-eat food subgroup showed no change this month. Higher prices were recorded for the meat, poultry and fish subgroup (up 0.7 percent).
Within these subgroups, the most significant upward contributions came from higher prices for fresh chicken (up 2.5 percent), sausages (up 7.3 percent), and lamb chops (up 7.6 percent).
The most significant downward contributions came from lower prices for minced beef (down 7.2 percent) and soft drinks (down 1.3 percent).
For the year to December 2008, prices for the meat, poultry and fish subgroup increased 11.1 percent, the restaurant meals and ready-to-eat food subgroup increased 6.1 percent, and the non-alcoholic beverages subgroup increased 5.6 percent.
For technical information contact:
Cindy Qin or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: January 2009 will be released on 12 February 2009