Food prices in June 2010
Food prices increased 1.3 percent in June 2010, following decreases of 0.7 percent and 0.5 percent in May and April 2010, respectively.
In June 2010, higher prices were recorded for the following subgroups: fruit and vegetables (up 9.3 percent), meat, poultry, and fish (up 2.7 percent), and restaurant meals and ready-to-eat food (up 0.3 percent). Lower prices were recorded for the grocery food (down 0.8 percent) and non-alcoholic beverages (down 0.8 percent) subgroups.
The most significant individual upward contributions came from higher prices for tomatoes (up 44.8 percent), lettuce (up 77.3 percent), cucumber (up 79.6 percent), and porterhouse/sirloin beef steak (up 14.3 percent).
The most significant individual downward contribution came from lower prices for chocolate biscuits (down 10.4 percent).
| Monthly index points contribution |
| Subgroup |
Apr 2010 to May 2010 |
May 2010 to Jun 2010 |
Fruit and vegetables
Meat, poultry, and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
-3.10
-4.68
-3.28
1.81
0.70 |
13.59
5.20
-3.78
-1.04
0.74 |
| Food price index |
-8.54 |
14.71 |
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 May 2010 and June 2010. 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 |
Apr 2010 to May 2010 |
May 2010 to Jun 2010 |
| Increase in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent) |
71
45.2
51.4
14.2
2.3 |
87
55.4
56.1
28.2
4.3 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
4
2.5
1.1 |
5
3.2
3.9 |
| Decrease in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent) |
82
52.2
47.5
-22.7
4.1 |
65
41.4
40.0
-13.5
2.9 |
The distribution of item-level movements shows that:
- The percentage of expenditure weight of items that increased in price rose, while the percentage of expenditure weight of items that decreased in price fell.
- The weighted average price increase rose significantly, while the weighted average price decrease fell significantly.
These movements resulted in a 1.3 percent increase in the June 2010 FPI, following a 0.7 percent decrease in May 2010.
The graph above shows the much larger contribution from items that rose in price and the lower contribution from items that fell in price.
Annual movements
Food prices rose 16.6 percent from July 2007 to July 2009, but recently have fallen after peaking in July 2009. Food prices fell 2.0 percent in the year to June 2010, compared with a fall of 0.5 percent in the year to May and a rise of 0.4 percent in the year to April.
The annual fall of 2.0 percent in the year to June 2010 is the largest fall since the monthly series began in January 1960. The food group of the quarterly consumers price index (CPI) has a longer time series. The food group of the CPI fell 2.4 percent in the year to the September 1957 quarter.
Three subgroups made downward contributions to the latest annual decrease: fruit and vegetables (down 9.2 percent), meat, poultry, and fish (down 3.9 percent), and grocery food (down 1.4 percent).
The remaining two subgroups recorded annual increases: restaurant meals and ready-to-eat food (up 2.2 percent), and non-alcoholic beverages (up 1.3 percent).
The most significant individual downward contributions came from lower prices for lettuce (down 29.7 percent), fresh chicken (down 13.5 percent), and potato crisps (down 10.8 percent).
The most significant individual upward contributions came from higher prices for soft drinks (up 4.7 percent) and fresh milk (up 4.4 percent).
| Annual index points contribution |
| Subgroup |
June 2009 to June 2010 |
Fruit and vegetables
Meat, poultry, and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
-16.16
-8.31
-6.39
1.46
5.34 |
| Food price index |
-24.07 |
| Note: Index points contributions may not sum to total due to rounding. |
Fruit and vegetables
Prices for the fruit and vegetables subgroup increased 9.3 percent in June 2010, following decreases of 2.1 percent and 1.7 percent in May and April, respectively. Higher vegetable prices (up 15.9 percent) accounted for nearly all of the 9.3 percent rise in the fruit and vegetables subgroup in June 2010, while fruit prices increased 0.3 percent.
Higher vegetable prices are usual in winter, and over half of the green vegetables monitored for the FPI recorded double-digit price increases in June 2010. The most significant upward vegetable contributions came from higher prices for tomatoes (up 44.8 percent), lettuce (up 77.3 percent), and cucumber (up 79.6 percent).
Note that no price movement was shown for nectarines, as insufficient prices were collected in June 2010 due to the delayed arrival of imported nectarines as a result of unseasonally cold weather in the United States. This has dampened the overall price movement for fruit. See the technical notes for more details.
For the year to June 2010, fruit and vegetable prices fell 9.2 percent. This is the biggest annual fall since the series began in June 1999. The most significant downward contributions came from lower prices for lettuce (down 29.7 percent) and bananas (down 10.9 percent). The most significant individual upward contribution came from higher prices for cucumber (up 18.3 percent).
Grocery food
Prices for the grocery food subgroup fell 0.8 percent in June 2010, following a decrease of 0.7 percent in May, and an increase of 0.7 percent in April.
The most significant downward contributions came from lower prices for chocolate biscuits (down 10.4 percent), chocolate bars and blocks (down 5.3 percent), and canned spaghetti (down 13.3 percent). The most significant upward contribution came from higher prices for canned soup (up 12.1 percent).
For the year to June 2010, grocery food prices decreased 1.4 percent. This is the largest annual fall in grocery food prices since the series began in June 1999. The most significant downward contribution came from potato crisps (down 10.8 percent). The most significant upward contributions came from higher prices for fresh milk (up 4.4 percent), cheddar cheese (up 11.1 percent), and butter (up 27.6 percent).
Other subgroups
In June 2010, higher prices were recorded for the meat, poultry, and fish subgroup (up 2.7 percent), and the restaurant meals and ready-to-eat food subgroup (up 0.3 percent).
The non-alcoholic beverages subgroup decreased 0.8 percent in June 2010.
Within these subgroups, the most significant upward contribution came from higher prices for porterhouse/sirloin beef steak (up 14.3 percent), which have rebounded from May when extensive discounting led to a 16.2 percent fall.
Changes to the timing of the food price index
The FPI has usually been released nine working days after the month, except every third month, when it has been released with the quarterly consumers price index (CPI). For example, the March 2010 FPI was released with the March 2010 quarter CPI, 12 working days after the quarter.
Statistics New Zealand has reviewed this practice and is now releasing each FPI on the ninth working day after the end of the month.
This change took effect with this release. The June 2010 quarter CPI will be released on 16 July.
For technical information contact:
Jolene Chen or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: July 2010 will be released on 12 August 2010.