Food prices in June 2008
Food prices rose 1.3 percent in June 2008, following increases of 1.0 percent and 0.3 percent in May and April 2008, respectively.
In June 2008, higher prices were recorded for the following subgroups: fruit and vegetables (up 5.2 percent), meat, poultry and fish (up 1.3 percent), grocery food (up 0.4 percent), and restaurant meals and ready-to-eat food (up 0.6 percent). Lower prices were recorded for the non-alcoholic beverage subgroup (down 0.3 percent).
The most significant individual upward contributions came from higher prices for lettuce (up 34.4 percent), poultry (up 4.8 percent), oranges (up 28.9 percent), apples (up 13.1 percent), and peaches (up 79.0 percent).
The most significant individual downward contributions came from lower prices for tomatoes (down 18.8 percent), and sausages (down 12.6 percent).
| Index Points Contribution |
| Subgroup |
April 2008 to
May 2008 |
May 2008 to
June 2008 |
Fruit and vegetables
Meat, poultry and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
5.26
0.37
2.28
1.30
2.55 |
7.28
2.43
2.15
1.66
-0.33 |
| Food Price Index |
11.76 |
13.19 |
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 May and June 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 |
April 2008 to
May 2008 |
May 2008 to
June 2008 |
| Increase in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent) |
92
59.7
64.4
23.1
3.3 |
102
66.2
66.7
23.8
3.2 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
3
1.9
1.6 |
2
1.3
1.4 |
| Decrease in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent) |
59
38.3
35.0
-11.3
3.0 |
50
32.5
31.9
-10.7
3.0 |
The distribution of item-level movements shows that:
- the percentage expenditure weight of items that increased in price rose while percentage expenditure weight of items that decreased in price fell.
- the percentage expenditure weight of items that increased in price is much greater than the percentage expenditure weight of items that decreased in price.
This resulted in an increase of 1.3 percent in the June 2008 FPI, compared with an increase of 1.0 percent in May 2008.
Annual movements
Food prices increased 8.2 percent in the year to June 2008, the highest annual increase since June 1990. The annual June 2008 price increase follows increases of 6.8 percent and 6.0 percent in the years to May 2008 and April 2008.
All five of the food subgroups increased in the year to June 2008. The most significant upward contribution came from higher prices for the grocery food subgroup (up 12.1 percent), followed by restaurant meals and ready-to-eat food (up 5.5 percent), fruit and vegetables (up 8.7 percent), meat, poultry and fish (up 4.4 percent), and non-alcoholic beverages (up 4.9 percent).
Within these subgroups, the most significant upward contributions came from higher prices for fresh milk (up 22.0 percent), cheddar cheese (up 61.9 percent), bread (up 15.2 percent), and butter (up 86.6 percent).
The most significant downward contribution came from lower prices for tomatoes (down 25.1 percent), and avocados (down 54.2 percent).
| Annual Index Points Contribution |
| Subgroup |
June 2007 to
June 2008 |
Grocery food
Meat, poultry and fish
Fruit and vegetables
Restaurant meals and ready-to-eat food
Non-alcoholic beverages |
46.62
12.96
11.76
7.87
4.59 |
| Food Price Index |
83.80 |
Note: Index points contributions may not sum to totals due to rounding.
Fruit and vegetables
Prices for the fruit and vegetable subgroup increased 5.2 percent in June 2008, following an increase of 3.8 percent in May 2008 and a decrease of 1.4 percent in April 2008.
Other similar monthly increases in seasonally unadjusted prices for fruit and vegetables have occurred in July 2007 (up 6.8 percent) and June 2006 (up 9.1 percent).
Fruit prices increased 9.7 percent in June 2008, while vegetable prices increased 2.6 percent.
The most significant upward contributions came from higher prices for lettuce (up 34.4 percent), oranges (up 28.9 percent), apples (up 13.1 percent), and peaches (up 79.0 percent).
Significant downward contributions came from lower prices for tomatoes (down 18.8 percent).
For the year to June 2008, fruit and vegetable prices increased 8.7 percent. The most significant upward contributions came from higher prices for lettuce (up 58.7 percent), potatoes (up 26.7 percent), and broccoli (up 87.5 percent). The most significant downward contributions came from tomatoes (down 25.1 percent), and avocados (down 54.2 percent).
Meat, poultry and fish
Prices for the meat, poultry and fish subgroup increased 1.3 percent in June 2008, following increases of 0.2 percent in both May 2008 and April 2008.
The most significant upward contribution came from higher prices for poultry (up 4.8 percent).
Significant downward contributions came from lower prices for sausages (down 12.6 percent), and ham (down 3.9 percent).
For the year to June 2008, prices for the meat, poultry and fish subgroup increased 4.4 percent. The most significant upward contributions came from higher prices for poultry (up 11.2 percent), bacon (up 9.0 percent), and minced beef (up 7.7 percent). Significant downward contributions came from lower prices for ham (down 11.0 percent), and sausages (down 5.8 percent).
Grocery food
Prices for the grocery food subgroup increased 0.4 percent in June 2008, following increases of 0.5 percent and 1.2 percent in May 2008 and April 2008, respectively.
The most significant upward contributions came from higher prices for bread (up 1.5 percent), boxed chocolate (up 9.8 percent), and ice cream and edible ices (up 2.0 percent).
The most significant downward contribution came from lower prices for chocolate biscuits (down 2.8 percent).
For the year to June 2008, prices for the grocery food subgroup increased 12.1 percent. The most significant upward contributions came from higher prices for fresh milk (up 22.0 percent), cheddar cheese (up 61.9 percent), bread (up 15.2 percent), butter (up 86.6 percent), and potato crisps (up 15.7 percent).
Other subgroups
In June 2008, higher prices were recorded for the restaurant meals and ready-to-eat food subgroup (up 0.6 percent), while lower prices were recorded for the non-alcoholic beverages subgroup (down 0.3 percent).
Within these subgroups, the most significant upward contributions came from higher prices for ready-to-eat food (up 0.7 percent), and restaurant meals (up 0.6 percent).
The most significant individual downward contribution came from lower prices for fruit juices (down 2.1 percent).
Release of the reweighted FPI for July 2008
The release of the July 2008 FPI will be later than usual, due to the implementation of a regular review of the index. The index will incorporate:
- an updated basket of goods and services
- an updated expenditure weighting pattern.
The July FPI will be released on 25 August 2008. The August 2008 FPI will be released on 11 September 2008, and the September 2008 FPI on 21 October, the same day as the reweighted Consumers Price Index (CPI) for the September 2008 quarter.
Subsequent CPI and FPI releases will be published at the usual times.
For technical information contact:
Peter McGinty or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: July 2008 will be released on 25 August 2008.