Food Price Index: January 2009

Commentary

Food prices in January 2009

Food prices increased 0.8 percent in January 2009, following a decrease of 0.2 percent in December 2008 and an increase of 0.8 percent in November 2008.

In January 2009, higher prices were recorded for the following subgroups: fruit and vegetables (up 3.6 percent), non-alcoholic beverages (up 2.2 percent), grocery food (up 0.4 percent), and restaurant meals and ready-to-eat food (up 0.4 percent). Lower prices were recorded for the meat, poultry and fish subgroup (down 0.6 percent).

The most significant individual upward contributions came from higher prices for tomatoes (up 49.5 percent), kiwifruit (up 48.2 percent), soft drinks (up 2.7 percent), and mandarins (up 37.3 percent).

The most significant individual downward contributions came from lower prices for apples (down 11.3 percent), lamb (down 9.6 percent), and potatoes (down 7.4 percent).

Graph, Index Points Contrbution to Food Price Index.  

Monthly Index Points Contribution
Subgroup November 2008 to
December 2008
December 2008 to
January 2009
Fruit and vegetables
Meat, poultry and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food 
-6.33
1.32
4.12
-1.12
0.13
5.69
-1.30
1.70
2.54
0.72
Food Price Index -1.88 9.36
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 December 2008 and January 2009. 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 November 2008 to
December 2008
December 2008 to
January 2009
Increase in price
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent)
81
51.6
55.4
20.6
3.2
95
60.5
61.2
24.5
3.5
No change in price
Number of items
Percentage of all items
Percentage of expenditure weight
4
2.5
1.1
2
1.3
0.7
Decrease in price
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent)
72
45.9
43.5
-22.5
4.5
60
38.2
38.1
-15.2
3.4
 

The distribution of item-level movements shows that:

  • the percentage expenditure weight of items that increased in price rose, while the percentage expenditure weight of items that decreased in price fell
  • the weighted average price increase has risen while the weighted average price decrease has fallen
  • the weighted average price increase is now greater than the weighted average price decrease.
These movements resulted in a 0.8 percent increase in the January 2009 FPI, compared with a 0.2 percent decrease in December 2008.

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Annual movements

Food prices increased 9.5 percent in the year to January 2009, following increases of 9.1 percent and 10.3 percent in the years to December and November 2008, respectively.

All five of the food subgroups increased in the year to January 2009. The most significant upward contribution came from the grocery food subgroup (up 10.0 percent), followed by the meat, poultry and fish (up 11.8 percent), restaurant meals and ready-to-eat food (up 6.0 percent), fruit and vegetables (up 13.4 percent), and non-alcoholic beverages (up 6.9 percent) subgroups.

Within these subgroups, the most significant upward contributions came from higher prices for bread (up 20.8 percent), ready-to-eat food (up 6.5 percent), restaurant meals (up 5.6 percent), prepared meats and smallgoods (up 15.3 percent), and poultry (up 12.8 percent).

Annual Index Points Contribution 
Subgroup January 2008 to January 2009
Grocery food
Meat, poultry and fish
Fruit and vegetables
Restaurant meals and ready-to-eat food
Non-alcoholic beverages
41.31
21.04
18.30
14.18
7.14
Food Price Index 101.98
Note: Index points contributions may not sum to totals due to rounding.
 

Fruit and vegetables

Prices for the fruit and vegetables subgroup increased 3.6 percent in January 2009, following decreases of 3.9 percent in December 2008 and 0.3 percent in November 2008.

Vegetable prices increased 3.9 percent and fruit prices increased 3.4 percent.

The most significant upward contributions came from higher prices for tomatoes (up 49.5 percent), kiwifruit (up 48.2 percent), mandarins (up 37.3 percent), strawberries (up 51.2 percent), capsicum (up 37.5 percent), and broccoli (up 45.1 percent).

The most significant downward contributions came from apples (down 11.3 percent) and potatoes (down 7.4 percent).

For the year to January 2009, fruit and vegetable prices increased 13.4 percent. The most significant individual upward contributions came from higher prices for potatoes (up 22.1 percent), kiwifruit (up 53.3 percent), and carrots (up 55.2 percent).

Graph, Fruit and Vegetables Subgroup.

Graph, Fruit and Vegetables Subgroup and Food Price Index.

Non-alcoholic beverages

Prices for the non-alcoholic beverages subgroup rose 2.2 percent in January 2009, following a decrease of 1.0 percent in December 2008 and an increase of 1.8 percent in November 2008.

The most significant upward contributions came from higher prices for soft drinks (up 2.7 percent) and energy drinks (up 4.7 percent).

For the year to January 2009, prices for the non-alcoholic beverages subgroup increased 6.9 percent. The most significant individual upward contribution came from higher prices for soft drinks (up 7.9 percent).

Graph, Non-alcoholic Beverages Subgroup.  

Graph, Non-alcoholic Beverages Subgroup and Food Price Index.

 

Grocery food

Prices for the grocery food subgroup increased 0.4 percent in January 2009, following increases of 0.9 percent in December 2008 and 1.0 percent in November 2008.

The most significant upward contributions came from higher prices for bread (up 2.0 percent), boxed chocolates (up 15.8 percent), and gourmet cheese (up 11.1 percent).

The most significant downward contribution came from lower prices for cakes and biscuits (down 3.6 percent).

For the year to January 2009, prices for the grocery food subgroup increased 10.0 percent. The most significant upward contributions came from higher prices for bread (up 20.8 percent), cakes and biscuits (up 9.3 percent), and potato crisps (up 18.7 percent).

Graph, Grocery Food Subgroup.

Graph, Grocery Food Subgroup and Food Price Index.

Other subgroups

In January 2009, prices for the restaurant meals and ready-to-eat food subgroup rose 0.4 percent. Prices for the meat, poultry and fish subgroup fell 0.6 percent.

Within these subgroups, the most significant upward contributions came from higher prices for ham (up 4.0 percent) and bacon (up 2.1 percent).

The most significant downward contribution came from lower prices for lamb (down 9.6 percent), with a high incidence of 'specialling' in January.

For the year to January 2009, prices for the meat, poultry and fish subgroup increased 11.8 percent, and 6.0 percent for the restaurant meals and ready-to-eat food subgroup.

Graph, Selected Subgroups and Food Price Index.

For technical information contact:
Yvonne Fakahau or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz

Next release ...

Food Price Index: February 2009 will be released on 12 March 2009.