Food prices in January 2010
Food prices increased 2.1 percent in January 2010, following decreases of 0.3 percent for both December and November 2009. This rise follows five consecutive monthly falls in the food price index (FPI). Prices have returned to levels last seen in September 2009.
In January 2010, all five subgroups recorded higher prices. Significant increases were recorded for grocery food (up 1.8 percent), fruit and vegetables (up 4.8 percent) and meat, poultry, and fish (up 3.3 percent). Non-alcoholic beverage prices (up 1.8 percent) and restaurant meals and ready-to-eat food prices (up 0.3 percent) also rose.
The most significant individual upward contributions came from higher prices for chicken (up 7.8 percent), fresh milk (up 5.1 percent), tomatoes (up 22.0 percent), and soft drinks (up 2.0 percent).
The most significant downward contributions came from lower prices for lettuce (down 16.8 percent) and nectarines (down 23.4 percent).
| Monthly Index Points Contribution |
| Subgroup |
Nov 2009 to Dec 2009 |
Dec 2009 to Jan 2010 |
Fruit and vegetables
Meat, poultry, and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
2.76
-2.45
-1.66
-1.54
-0.52 |
7.29
6.54
8.14
2.26
0.71 |
| Food price index |
-3.41 |
24.94 |
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 December 2009 and January 2010. 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 |
Nov 2009 to Dec 2009 |
Dec 2009 to Jan 2010 |
| Increase in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent) |
67
42.7
41.6
16.2
3.3 |
104
66.2
67.3
35.2
4.5 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
7
4.5
6.9 |
6
3.8
4.4 |
| Decrease in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent) |
83
52.9
51.5
-19.6
3.2 |
47
29.9
28.2
-10.3
3.1 |
The distribution of item-level movements shows that:
- the percentage of expenditure weight of items that increased in price rose significantly, while the percentage of expenditure weight of items that decreased in price fell significantly.
- the weighted average price increase rose, while the weighted average price decrease remained about the same.
These movements resulted in a 2.1 percent increase in the January 2010 FPI, following a 0.3 percent decrease in December 2009.
Annual movements
Food prices increased 2.2 percent in the year to January 2010, following increases of 0.9 percent for both the years to December and November 2009.
Four of the food subgroups increased in the year to January 2010. The upward contributions came from higher prices for grocery food (up 1.7 percent), non-alcoholic beverages (up 6.2 percent), restaurant meals and ready-to-eat food (up 2.8 percent), and meat, poultry, and fish (up 3.0 percent).
The fruit and vegetables subgroup decreased 1.0 percent. This is the sixth consecutive annual fall in the fruit and vegetables price index.
The most significant upward contributions came from higher prices for soft drinks (up 8.8 percent), ready-to-eat food (up 2.9 percent), and tomatoes (up 37.8 percent).
The most significant downward contribution came from lower prices for cheese (down 11.5 percent).
Although food prices are now 2.2 percent higher than a year ago, they are 12.0 percent higher than two years ago.
| Annual Index Points Contribution |
| Subgroup |
January 2009 to January 2010 |
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food
Meat, poultry, and fish
Fruit and vegetables |
7.56
7.28
6.63
6.01
-1.65 |
| Food price index |
25.84 |
| Note: Index points contributions may not sum to total due to rounding. |
Grocery food
Prices for the grocery food subgroup increased 1.8 percent in January 2010, following decreases of 0.3 percent and 0.2 percent in December and November 2009, respectively. The increase in grocery food prices follows five consecutive monthly decreases.
This increase was mainly driven by higher prices for dairy products. Fresh milk prices rose 5.1 percent, the largest increase since July 2007, yoghurt prices rose 3.4 percent, butter prices rose 13.3 percent, and cheese prices rose 1.7 percent. Prices for boxed chocolate also rose (up 17.6 percent), following specialling in December 2009 and a reduction in some package sizes at that time.
For the year to January 2010, grocery food prices increased 1.7 percent. The most significant upward contributions came from higher prices for cakes and biscuits (up 5.4 percent), sugar (up 39.7 percent), and confectionary, nuts, and snacks (up 3.8 percent). These increases were partly offset by lower prices for cheese (down 11.5 percent) and butter (down 18.5 percent).
Fruit and vegetables
Prices for the fruit and vegetables subgroup increased 4.8 percent in January 2010, following an increase of 1.8 in December 2009 and a decrease of 2.0 percent in November 2009. In January 2010, fruit prices rose 6.6 percent, while vegetable prices rose 3.4 percent.
The most significant upward contributions came from higher prices for tomatoes (up 22.0 percent), kiwifruit (up 38.3 percent), broccoli (up 35.7 percent), and apples (up 7.5 percent). Kiwifruit, broccoli, and apple prices usually rise in January. The most significant decreases came from lettuce (down 16.8 percent), nectarines (down 23.4 percent), and carrots (down 13.2 percent).
For the year to January 2010, fruit and vegetable prices decreased 1.0 percent. Annual falls for fruit and vegetable prices have been recorded for the past six months. Fruit prices were down 5.1 percent and vegetable prices were up 2.2 percent for the year to January 2010.
The most significant downward contributions to the annual fall came from lower prices for potatoes (down 11.9 percent), carrots (down 25.7 percent), apples (down 10.0 percent), mandarins (down 24.2 percent), and oranges (down 22.5 percent). The most significant upward contribution came from tomatoes (up 37.8 percent).
Meat, poultry, and fish
Prices for the meat, poultry, and fish subgroup increased 3.3 percent in January 2010, following a decrease of 1.2 percent in December 2009 and an increase of 0.1 percent in November 2009. The index is now at its highest level since September 2009.
The most significant upward contributions came from higher prices for chicken (up 7.8 percent), steak (up 6.2 percent), and sausages (up 6.8 percent). The increase in sausage prices follows four monthly falls. The most significant downward contribution came from minced beef (down 2.6 percent).
For the year to January 2010, meat, poultry, and fish prices increased 3.0 percent, which were mainly driven by higher prices for lamb (up 20.6 percent). The most significant downward contribution came from lower prices for corned beef (down 18.3 percent).
Other subgroups
In January 2010, higher prices were recorded for the subgroups of non-alcoholic beverages (up 1.8 percent) and restaurant meals and ready-to-eat food (up 0.3 percent).
Within these subgroups, the most significant upward contribution in January 2010 came from higher prices for soft drinks (up 2.0 percent).
In the year to January 2010, higher prices were recorded for the subgroups of non-alcoholic beverages (up 6.2 percent) and restaurant meals and ready-to-eat food (up 2.8 percent).
For technical information contact:
Sean Broughton or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: February 2010 will be released on 11 March 2010.