Food prices in May 2010
Food prices decreased 0.7 percent in May 2010, following a decrease of 0.5 percent in April and an increase of 0.2 percent in March. Prices are at their lowest level since 2008, and are 3.8 percent below their mid-2009 peak.
In May 2010, lower prices were recorded for the following subgroups: meat, poultry, and fish (down 2.4 percent), grocery food (down 0.7 percent), and fruit and vegetables (down 2.1 percent). Higher prices were recorded for the non-alcoholic beverages (up 1.5 percent) and restaurant meals and ready-to-eat food (up 0.3 percent) subgroups.
The most significant individual downward contributions came from lower prices for porterhouse/sirloin beef steak (down 16.2 percent), mandarins (down 34.7 percent), fresh chicken (down 5.0 percent), and kiwifruit (down 49.4 percent).
The most significant upward contributions came from higher prices for tomatoes (up 10.6 percent), instant coffee (up 9.8 percent), and plain biscuits (up 10.0 percent).
| Monthly index points contribution |
| Subgroup |
Mar 2010 to Apr 2010 |
Apr 2010 to May 2010 |
Fruit and vegetables
Meat, poultry, and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
-2.67
-5.46
3.17
-0.59
0.01 |
-3.10
-4.68
-3.28
1.81
0.70 |
| Food price index |
-5.54 |
-8.54 |
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 April 2010 and May 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 |
Mar 2010 to Apr 2010 |
Apr 2010 to May 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
43.1
13.6
2.7 |
71
45.2
51.4
14.2
2.3 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
4
2.5
1.6 |
4
2.5
1.1 |
| 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
55.3
-19.1
2.9 |
82
52.2
47.5
-22.7
4.1 |
The distribution of item-level movements shows that:
- The weighted average price decrease rose, while the weighted average price increase fell.
- The weighted average price decrease was much larger than the weighted average price increase.
These movements resulted in a 0.7 percent decrease in the May 2010 FPI, following a 0.5 percent decrease in April 2010.
The larger fall this month is due to stronger price falls for the items that decreased in price.
Annual movements
Food prices decreased 0.5 percent in the year to May 2010, following increases of 0.4 percent and 0.3 percent for the years to April 2010 and March 2010, respectively. The May 2010 annual decrease is the first annual decrease since a 0.1 percent fall in the year to July 2004, and the largest fall since the year to April 2003.
Both the meat, poultry, and fish subgroup and the fruit and vegetables subgroup were down 4.5 percent in the year to May 2010.
The remaining three subgroups recorded annual increases: restaurant meals and ready-to-eat food (up 2.0 percent), non-alcoholic beverages (up 2.4 percent), and grocery food (up 0.5 percent).
The most significant individual downward contributions came from lower prices for fresh chicken (down 11.5 percent), porterhouse/sirloin beef steak (down 10.6 percent), bacon (down 7.4 percent), and bananas (down 9.1 percent).
The most significant individual upward contributions came from higher prices for soft drinks (up 6.8 percent), fresh milk (up 5.1 percent), butter (up 28.9 percent), and cheddar cheese (up 9.9 percent).
| Annual index points contribution |
| Subgroup |
May 2009 to May 2010 |
Meat, poultry, and fish
Fruit and vegetables
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
-9.20
-6.90
2.24
2.80
4.85 |
| Food price index |
-6.21 |
| Note: Index points contributions may not sum to total due to rounding. |
Meat, poultry, and fish
Prices for the meat, poultry, and fish subgroup decreased 2.4 percent in May 2010, following a decrease of 2.6 percent in April and an increase of 1.3 percent in March.
The most significant downward contributions came from porterhouse/sirloin beef steak (down 16.2 percent) and fresh chicken (down 5.0 percent). Both of these items were influenced by discounting, with over half of recorded porterhouse/sirloin beef steak prices on special.
Meat, poultry, and fish prices rose 10.1 percent from July 2008 to December 2008, before peaking in September 2009. Prices in May 2010 returned to levels last recorded in September 2008, and were 7.1 percent lower than their 2009 peak. Prices for fresh chicken peaked in August 2009, and were 13.4 percent below this peak in May 2010.
For the year to May 2010, meat, poultry, and fish prices fell 4.5 percent. This is the biggest annual fall since the year to August 2003. The most significant downward contributions came from lower prices for fresh chicken (down 11.5 percent), porterhouse/sirloin beef steak (down 10.6 percent), and bacon (down 7.4 percent). The most significant individual upward contribution came from higher prices for sausages (up 9.7 percent).
Grocery food
Prices for the grocery food subgroup fell 0.7 percent in May 2010, following increases of 0.7 percent and 0.2 percent in April and March, respectively.
The most significant downward contributions came from lower prices for potato crisps (down 5.8 percent) and chocolate bars and blocks (down 4.4 percent). The most significant upward contribution came from higher prices for plain biscuits (up 10.0 percent), where prices were influenced by discounting in April.
For the year to May 2010, grocery food prices increased 0.5 percent. The most significant upward contributions came from higher prices for fresh milk (up 5.1 percent), butter (up 28.9 percent), and cheddar cheese (up 9.9 percent). Prices for butter have increased strongly over the past five months, by 51.1 percent since December 2009, and are now 3.0 percent above their 2008 peak. Similarly, fresh milk prices are now 6.2 percent higher than December 2009, and 0.6 percent above their 2008 peak, while cheddar cheese prices are now 13.6 percent higher than in December 2009, but 10.3 percent below their 2008 peak.
Other subgroups
In May 2010, the fruit and vegetables subgroup fell 2.1 percent, while the non-alcoholic beverages subgroup and the restaurant meals and ready-to-eat food subgroup increased 1.5 percent and 0.3 percent, respectively.
Fruit prices decreased 4.5 percent, with lower prices for mandarins (down 34.7 percent) and kiwifruit (down 49.4 percent) reflecting more plentiful supply. Kiwifruit prices can often halve in May and mandarins prices can often fall by over 40 percent.
Vegetable prices decreased 0.2 percent. Lower prices were recorded for broccoli (down 23.3 percent) and cauliflower (down 41.2 percent). These price falls were partly offset by higher prices for tomatoes (up 10.6 percent).
Another upward contribution came from higher prices for instant coffee (up 9.8 percent), after significant discounting in April.
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 in future will 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:
Jolene Chen or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: June 2010 will be released on 13 July 2010.