Food prices in March 2010
Food prices increased 0.2 percent in March 2010, following a decrease of 1.3 percent in February 2010 and an increase of 2.1 percent in January 2010.
In March 2010, higher prices were recorded for the following subgroups: meat, poultry, and fish (up 1.3 percent), grocery food (up 0.2 percent), restaurant meals and ready-to-eat food (up 0.3 percent), and non-alcoholic beverages (up 0.5 percent). Lower prices were recorded for the fruit and vegetables subgroup (down 1.9 percent).
The most significant individual upward contributions came from higher prices for porterhouse/sirloin steak (up 17.7 percent), fresh chicken (up 5.0 percent), and lettuce (up 21.2 percent).
The most significant downward contributions came from lower prices for apples (down 19.6 percent), plain biscuits (down 12.3 percent), and margarine (down 10.9 percent).
| Monthly Index Points Contribution |
| Subgroup |
Jan 2010 to Feb 2010 |
Feb 2010 to Mar 2010 |
Fruit and vegetables
Meat, poultry, and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
-5.53
-4.82
-3.65
-2.34
0.01 |
-2.84
2.56
1.31
0.59
0.68 |
| Food price index |
-16.32 |
2.30 |
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 February 2010 and March 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 |
Jan 2010 to Feb 2010 |
Feb 2010 to Mar 2010 |
| Increase in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent) |
70
44.6
49.3
11.8
2.0 |
82
52.2
56.4
19.9
3.0 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
1
0.6
1.0 |
4
2.5
0.8 |
| Decrease in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent) |
86
54.8
49.7
-28.2
4.7 |
71
45.2
42.8
-17.6
3.5 |
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, while the weighted average price decrease fell.
- the percentage of expenditure weight of items that increased in price is now more than the percentage of expenditure weight of items that decreased in price.
These movements resulted in a 0.2 percent increase in the March 2010 FPI, following a 1.3 percent decrease in February 2010.
Annual movements
Food prices increased 0.3 percent in the year to March 2010, following increases of 0.7 percent and 2.2 percent for the years to February 2010 and January 2010, respectively. The latest annual increase is the smallest since the year to July 2004, when the FPI fell 0.1 percent.
Three of the food subgroups increased in the year to March 2010: restaurant meals and ready-to-eat food (up 2.3 percent), grocery food (up 1.1 percent), and non-alcoholic beverages (up 2.2 percent).
For the year to March 2010, the fruit and vegetable subgroup decreased 5.3 percent while the meat, poultry, and fish subgroup decreased 0.3 percent.
The most significant individual upward contributions came from higher prices for soft drinks (up 5.1 percent), tomatoes (up 30.4 percent), and fresh milk (up 3.2 percent).
The most significant indvidual downward contribution came from lower prices for lettuce (down 24.2 percent).
Although food prices are now 0.3 percent higher than a year ago, they are 8.9 percent higher than two years ago.
| Annual Index Points Contribution |
| Subgroup |
March 2009 to March 2010 |
Restaurant meals and ready-to-eat food
Grocery food
Non-alcoholic beverages
Meat, poultry, and fish
Fruit and vegetables |
5.50
5.17
2.69
-0.72
-8.37 |
| Food price index |
4.29 |
| Note: Index points contributions may not sum to total due to rounding. |
Meat, poultry, and fish
Prices for the meat, poultry, and fish subgroup increased 1.3 percent in March 2010, following a decrease of 2.4 percent in February 2010 and an increase of 3.3 percent in January 2010.
The most significant upward contributions came from porterhouse/sirloin steak (up 17.7 percent) and fresh chicken (up 5.0 percent). Porterhouse/sirloin steak prices rebounded from February when extensive discounting led to a 17.6 percent fall. However, porterhouse/sirloin steak prices are still down 3.0 percent from their January 2010 levels. The price increase in porterhouse/sirloin steak was a key contributor to the increase in the food price index for March 2010.
For the year to March 2010, meat, poultry, and fish prices decreased 0.3 percent. The most significant downward contributions came from lower prices for ham (down 9.2 percent) and fresh chicken (down 3.4 percent). The most significant upward contributions came from higher prices for lamb chops (up 12.2 percent) and sausages (up 9.4 percent).
Fruit and vegetables
Prices for the fruit and vegetable subgroup fell 1.9 percent in March 2010, following a decrease of 3.5 percent in February 2010 and an increase of 4.8 percent in January 2010. In March 2010, vegetable prices fell 2.0 percent, while fruit prices fell 1.6 percent.
The most significant downward contributions came from lower prices for apples (down 19.6 percent), kumara (down 21.1 percent), and grapes (down 26.2 percent). Apple prices typically fall by about 20 percent in February (26.6 percent in February 2010) and by a further 20 percent in March, as the new season's crop becomes more widely available.
The most significant upward contributions came from higher prices for lettuce (up 21.2 percent) and broccoli (up 30.5 percent).
For the year to March 2010, fruit and vegetable prices decreased 5.3 percent. Annual falls for fruit and vegetable prices have now been recorded for eight consecutive months. The most significant downward contributions came from lower prices for lettuce (down 24.2 percent), strawberries (down 25.5 percent), kiwifruit (down 27.8 percent), and mandarins (down 25.3 percent). These decreases were partly offset by higher prices for tomatoes (up 30.4 percent).
Other subgroups
In March 2010, higher prices were recorded for the grocery food (up 0.2 percent), restaurant meals and ready-to-eat food (up 0.3 percent), and non-alcoholic beverages (up 0.5 percent) subgroups.
Within these subgroups, the most significant upward contributions came from higher prices for butter (up 16.2 percent), and chocolate (up 3.6 percent). Prices for butter have increased strongly over the past three months, increasing 34.1 percent since December 2009, but are still 8.5 percent below their 2008 peak. Similarly, cheese prices are now 9.2 percent higher than in December 2009, but 6.6 percent below their 2008 peak.
Changes to the timing of the food price index
The FPI is usually released nine working days after the month, except every third month, when it is released with the quarterly consumers price index (CPI). For example, the March FPI is released with the March quarter CPI, 12 working days after the quarter.
Statistics New Zealand has reviewed this practice and will in future release each FPI on the ninth working day after the end of the month.
This change will take place for the June 2010 FPI, which will be released on 13 July. The June 2010 quarter CPI will be released on 16 July.
For technical information contact:
Sean Broughton or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: April 2010 will be released on 13 May 2010.