New Zealand food prices fell 0.8 per cent in May, Statistics New Zealand said on Friday, reports IndustrySearch.com.
The report continues that the fall follows a very small 0.1 per cent rise in April and helps bring some relief to consumers who have experienced sharp rises in prices over the last year.
The annual rise in the Food Price Index dropped to 4.0 per cent in the May year from 5.2 per cent in the April year. The annual rise is the smallest since January 2001.
The most significant fall was the fruit and vegetable prices group where prices fell by 2.4 per cent in May, driven by falls in prices for tomatoes, potatoes and capsicums. Carrots recorded the most significant upward move.
Grocery food, soft drinks and confectionery prices fell 0.6 per cent in May. That follows on from a 0.4 per cent fall in April. Boxed chocolates (down 14.4 per cent) and potato crisps (down 6.7 per cent) were the most significant price falls.
The report continues that the only subgroup to post a rise in May was the restaurant meals and ready-to-eat food group, which rose 0.3 per cent. The index for this group rose 0.4 per cent in April. The increase in May was mainly due to higher ready-to-eat food prices, which rose by 0.4 per cent. For the year, prices in this group are up by 4.3 per cent.