Food Price Index: February 2010

Food prices in February 2010

Food prices decreased 1.3 percent in February 2010, following increases of 2.1 percent in January 2010 and a decrease of 0.3 percent in December 2009.

In February 2010, four of the five subgroups recorded lower prices. Significant decreases were recorded for fruit and vegetables (down 3.5 percent), meat, poultry, and fish (down 2.4 percent), grocery food (down 0.8 percent), and non-alcoholic beverages (down 1.9 percent). Restaurant meals and ready-to-eat food prices displayed no change.

The most significant individual downward contributions came from lower prices for porterhouse/sirloin steak (down 17.6 percent) and apples (down 26.6 percent).

The most significant upward contributions came from higher prices for tomatoes (up 12.2 percent), strawberries (up 36.3 percent), and minced beef (up 5.2 percent).

 

Distribution of item-level movements

The table below outlines the distribution of price movements in January 2010 and February 2010. The FPI has been partitioned into those national item-level indexes that increased, showed no change, or decreased.

• the percentage of expenditure weight of items that increased in price fell significantly, while the percentage of expenditure weight of items that decreased in price rose significantly.
• the weighted average price increase fell, while the weighted average price decrease rose.

Annual movements

Food prices increased 0.7 percent in the year to February 2010, following increases of 2.2 percent, and 0.9 percent for the years to January 2010 and December 2009, respectively. The latest annual increase is the smallest since the FPI rose 0.4 percent for the year to April 2005.

Three of the food subgroups increased in the year to February 2010. The upward contributions came from higher prices for restaurant meals and ready-to-eat food (up 2.2 percent), non-alcoholic beverages (up 2.5 percent), and grocery food (up 0.6 percent).

The fruit and vegetables subgroup and the meat, poultry, and fish subgroup decreased 1.9 percent and 0.2 percent, respectively, for the year to February 2010.

The most significant upward contributions came from higher prices for tomatoes (up 31.3 percent), lamb chops (up 20.7 percent), and soft drinks (up 3.4 percent).

The most significant downward contributions came from lower prices for potatoes (down 20.1 percent), porterhouse/sirloin steak (down 11.1 percent), and chicken (down 5.0 percent).

Although food prices are now 0.7 percent higher than a year ago, they are 9.6 percent higher than two years ago.

 

Fruit and vegetables

Prices for the fruit and vegetable subgroup fell 3.5 percent in February 2010, following increases of 4.8 percent and 1.8 percent in January 2010 and December 2009, respectively. In February 2010, fruit prices fell 4.4 percent, while vegetable prices fell 2.8 percent.

The most significant downward contributions came from apples (down 26.6 percent) and potatoes (down 11.4 percent). Apple prices typically fall by at least 20 percent in the month of February, as the new season's crop becomes more widely available. The most significant increases came from tomatoes (up 12.2 percent) and strawberries (up 36.3 percent).

For the year to February 2010, fruit and vegetable prices decreased 1.9 percent. Annual falls for fruit and vegetable prices have been recorded for the past seven months. The most significant downward contributions came from lower prices for potatoes (down 20.1 percent) and kiwifruit (down 31.1 percent). These decreases were partly offset by higher prices for tomatoes (up 31.3 percent).

 

 

Meat, poultry, and fish

Prices for the meat, poultry, and fish subgroup decreased 2.4 percent in February 2010, following an increase of 3.3 percent in January 2010 and a decrease of 1.2 percent in December 2009. 

The most significant downward contributions came from lower prices for porterhouse/sirloin steak (down 17.6 percent). The most significant upward contribution came from minced beef (up 5.2 percent). Extensive specialling has seen porterhouse/sirloin steak drop to a level last seen in August 2007. Conversely, minced beef had many prices coming off special.

The changes in beef (down 5.5 percent) and chicken (down 4.4 percent) together contributed over 80 percent of the fall in the meat, poultry, and fish subgroup.

For the year to February 2010, meat, poultry, and fish prices decreased 0.2 percent. The most significant downward contributions came from lower prices for porterhouse/sirloin steak  (down 11.1 percent) and chicken (down 5.0 percent). The most significant upward contributions came from lamb chops (up 20.7 percent) and sausages (up 13.7 percent).

 

 

 

Other subgroups

In February 2010, lower prices were recorded for the grocery food (down 0.8 percent) and non-alcoholic beverages (down 1.9 percent) subgroups.

Within these subgroups, the most significant downward contributions in February 2010 came from lower prices for soft drinks (down 2.5 percent) and chocolate biscuits (down 7.9 percent).

Restaurant meals and ready-to-eat food prices showed no change, with increases in some items, such as restaurant meals (up 0.2 percent) being balanced by decreases in takeaway salad prices (down 11.4 percent) with significant specialling.

In the year to February 2010, higher prices were recorded for the subgroups of  restaurant meals and ready-to-eat food (up 2.2 percent), non-alcoholic beverages (up 2.5 percent), and grocery food (up 0.6 percent). There has been a sustained increase in sugar prices (up 38.0 percent), with three monthly increases of over 8 percent during the past year.

 

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

Next release ...

Food Price Index: March 2010 will be released on 20 April 2010.