Food prices in July 2010
Food prices increased 1.6 percent in July 2010, following an increase of 1.3 percent in June and a decrease of 0.7 percent in May.
In July 2010, the fruit and vegetables subgroup rose strongly, up 8.7 percent, reflecting seasonal rises in vegetable prices. Higher prices were also recorded for grocery food (up 1.2 percent), meat, poultry, and fish (up 0.5 percent), and restaurant meals and ready-to-eat food (up 0.3 percent). Lower prices were recorded for the non-alcoholic beverages subgroup (down 1.1 percent).
The most significant individual upward contributions came from higher prices for lettuce (up 44.9 percent), fresh milk (up 5.9 percent), tomatoes (up 13.9 percent), broccoli (up 38.1 percent), and yoghurt (up 7.0 percent).
The most significant individual downward contributions came from lower prices for bread (down 2.1 percent) and coffee (down 6.6 percent).
| Monthly index points contribution |
| Subgroup |
May 2010 to Jun 2010 |
Jun 2010 to Jul 2010 |
Fruit and vegetables
Meat, poultry, and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
13.59
5.20
-3.78
-1.04
0.74 |
13.84
0.99
5.80
-1.35
0.70 |
| Food price index |
14.71 |
19.99 |
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 June 2010 and July 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 |
May 2010 to Jun 2010 |
Jun 2010 to Jul 2010 |
| Increase in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent) |
87
55.4
56.1
28.2
4.3 |
93
59.2
62.1
30.9
4.2 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
5
3.2
3.9 |
2
1.3
0.9 |
| Decrease in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent) |
65
41.4
40.0
-13.5
2.9 |
62
39.5
37.1
-10.9
2.5 |
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 decrease has also fallen.
These movements resulted in a 1.6 percent increase in the July 2010 FPI, following a 1.3 percent increase in June 2010.
The graph above shows the larger contribution from items that rose in price and the lower contribution from items that fell in price. The contribution from the items that decreased in price is the lowest since January 2010 when the food price index increased 2.1 percent.
Annual movements
Food prices rose 16.6 percent from July 2007 to their peak in July 2009, but have fallen 1.0 percent in the year to July 2010. The fall in the year to July 2010 follows falls of 2.0 percent in the year to June and 0.5 percent in the year to May. Three consecutive annual falls in food prices have not occurred since four consecutive annual falls were recorded for the years to February, March, April, and May 2000.
Four subgroups made downward contributions to the latest annual decrease: fruit and vegetables (down 4.3 percent), meat, poultry, and fish (down 2.8 percent), grocery food (down 0.7 percent), and non-alcoholic beverages (down 0.1 percent).
Restaurant meals and ready-to-eat food prices increased 2.1 percent in the year to July 2010.
The most significant individual downward contributions came from lower prices for lettuce (down 28.1 percent) and fresh chicken (down 12.2 percent).
The most significant individual upward contributions came from higher prices for fresh milk (up 10.8 percent) and tomatoes (up 24.0 percent).
| Annual index points contribution |
| Subgroup |
July 2009 to July 2010 |
Fruit and vegetables
Meat, poultry, and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
-7.72
-5.76
-3.02
-0.19
5.24 |
| Food price index |
-11.46 |
| Note: Index points contributions may not sum to total due to rounding. |
Fruit and vegetables
Fruit and vegetable prices increased 8.7 percent in July 2010, following a 9.3 percent increase in June and a 2.1 percent decrease in May. Higher vegetable prices (up 11.5 percent) accounted for four-fifths of the 8.7 percent rise in the fruit and vegetables subgroup in July 2010, while fruit prices increased 4.4 percent.
Vegetable prices typically rise during winter months. A 29.3 percent rise in vegetable prices from May to July 2010 compares with a cumulative increase of 31.0 percent over the same period last year.
The most significant upward contributions to the July rise came from higher prices for lettuce (up 44.9 percent), tomatoes (up 13.9 percent), and broccoli (up 38.1 percent). Lettuce prices tend to rise in winter with higher shelf prices and smaller sizes, impacting significantly on prices per kg used in the FPI.
For the year to July 2010, fruit and vegetable prices fell 4.3 percent, and prices are now 7.3 percent lower than their August 2008 peak. Lettuce prices fell 28.1 percent in the year to July 2010, and are 37.5 percent lower than their August 2008 peak. The most significant individual upward contribution in the year to July 2010 came from higher prices for tomatoes (up 24.0 percent).
Grocery food
Prices for the grocery food subgroup rose 1.2 percent in July 2010, following decreases of 0.8 percent and 0.7 percent in June and May, respectively.
The most significant individual upward contributions came from higher prices for fresh milk (up 5.9 percent) and yoghurt (up 7.0 percent). The most significant individual downward contribution came from lower prices for bread (down 2.1 percent).
The 5.9 percent rise in fresh milk prices in July 2010 is on top of a 5.1 percent rise in January. Prices are now 12.5 percent higher than in December 2009. The price increase for yoghurt reflects prices rebounding from discounting in June and a reduction in some pottle sizes (which are shown as price increases).
For the year to July 2010, grocery food prices decreased 0.7 percent. The most significant downward contributions came from snack foods (down 9.6 percent) and bread (down 4.4 percent). The most significant upward contributions came from higher prices for fresh milk (up 10.8 percent), cheddar cheese (up 11.8 percent), and butter (up 27.2 percent). While fresh milk prices are now at their peak, cheddar cheese prices are now 10.7 percent below their 2008 peak. Butter prices peaked in May 2010, but have since fallen 5.3 percent.
Other subgroups
In July 2010, higher prices were recorded for the meat, poultry, and fish (up 0.5 percent) and restaurant meals and ready-to-eat food (up 0.3 percent) subgroups.
The non-alcoholic beverages subgroup decreased 1.1 percent in July 2010.
Within these subgroups, the most significant upward contributions came from higher prices for fresh chicken (up 2.9 percent), frozen chicken (up 6.2 percent), and porterhouse/sirloin beef steak (up 2.9 percent).
The most significant downward contributions came from lower prices for coffee (down 6.6 percent), minced beef (down 4.4 percent), and ham (down 5.5 percent).
For the year to July 2010, meat, poultry, and fish prices decreased 2.8 percent and non-alcoholic beverage prices decreased 0.1 percent. Restaurant meals and ready-to-eat food prices rose 2.1 percent.
The most significant downward contributions came from fresh chicken (down 12.2 percent), ham (down 13.9 percent), and bacon (down 7.1 percent). The most significant upward contributions came from higher prices for soft drinks (up 2.8 percent) and sausages (up 10.1 percent).
For technical information contact:
Lourdes Vivo or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: August 2010 will be released on 13 September 2010.