Food prices in May 2009
Food prices increased 0.3 percent in May 2009, following a decrease of 0.6 percent in April 2009 and an increase of 0.5 percent in March 2009.
In May 2009, higher prices were recorded for the following subgroups: grocery food (up 1.0 percent), non-alcoholic beverages (up 1.8 percent), and restaurant meals and ready-to-eat food (up 0.3 percent). The prices for the meat, poultry and fish subgroup remained unchanged. Lower prices were recorded for the fruit and vegetables subgroup (down 2.6 percent).
The most significant individual upward contributions came from higher prices for soft drinks (up 2.1 percent), bread (up 2.6 percent), poultry (up 3.1 percent), and cakes and biscuits (up 2.9 percent).
The most significant individual downward contributions came from lower prices for beef (down 6.7 percent), mandarins (down 45.3 percent), lettuce (down 18.9 percent), kiwifruit (down 49.8 percent), and yoghurt (down 5.7 percent).
| Monthly Index Points Contribution |
| Subgroup |
March 2009 to
April 2009 |
April 2009 to
May 2009 |
Fruit and vegetables
Meat, poultry and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
-3.18
-1.68
-1.94
-1.09
0.88 |
-4.05
0.02
4.75
2.21
0.49 |
| Food Price Index |
-7.01 |
3.42 |
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 May 2009 and April 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 |
March 2009 to
April 2009 |
April 2009 to
May 2009 |
| Increase in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent) |
77
49.0
51.5
14.4
2.4 |
91
58.0
56.7
19.2
2.9 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
2
1.3
0.4 |
6
3.8
3.2 |
| Decrease in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent) |
78
49.7
48.1
-21.4
3.8 |
60
38.2
40.1
-15.8
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 rose and the weighted average price decrease fell.
These movements resulted in a 0.3 percent increase in the May 2009 FPI, compared with a 0.6 percent decrease in April 2009.
Annual movements
Food prices increased 6.8 percent in the year to May 2009, following increases of 7.6 percent and 8.6 percent in the years to April and March 2009, respectively. The increase for the year to May 2009 is the smallest annual increase since May 2008 when prices also increased 6.8 percent for the year.
All five of the food subgroups increased in the year to May 2009. The most significant upward contribution came from the grocery food subgroup (up 7.2 percent), followed by the meat, poultry and fish (up 11.3 percent), restaurant meals and ready-to-eat food (up 4.9 percent), non-alcoholic beverages (up 6.7 percent), and fruit and vegetables (up 3.1 percent) subgroups.
Within these subgroups, the most significant upward contributions came from higher prices for bread (up 16.4 percent) and ready-to-eat food (up 5.2 percent).
The most significant downward contributions came from lower prices for tomatoes (down 34.7 percent) and lettuce (down 34.4 percent).
| Annual Index Points Contribution |
| Subgroup |
May 2008 to May 2009 |
Grocery food
Meat, poultry and fish
Fruit and vegetables
Restaurant meals and ready-to-eat food
Non-alcoholic beverages |
30.82
20.61
11.42
7.68
4.15 |
| Food Price Index |
74.68 |
Note: Index points contributions may not sum to totals due to rounding.
Grocery food
Prices for the grocery food subgroup rose 1.0 percent in May 2009, following decreases of 0.4 percent and 0.2 percent in the months of April and March 2009, respectively. This increase in the grocery food subgroup prices for the month of May, was influenced by a high incidence of 'specialling' in the previous two months.
The most significant upward contributions came from higher prices for bread (up 2.6 percent), cakes and biscuits (up 2.9 percent), and ice cream and ice blocks (up 2.6 percent).
The most significant downward contributions came from lower prices for yoghurt (down 5.7 percent) and muesli bars (down 5.6 percent).
For the year to May 2009, prices for the grocery food subgroup increased 7.2 percent. The most significant individual upward contributions came from higher prices for bread (up 16.4 percent), cakes and biscuits (up 13.0 percent), and yoghurt (up 19.0 percent). The most significant downward contributions came from cheddar cheese (down 14.3 percent) and butter (down 16.3 percent).
Non-alcoholic beverages
Prices for the non-alcoholic beverages subgroup rose 1.8 percent in May 2009, following a decrease of 0.9 percent in April 2009 and an increase of 0.8 percent in March 2009.
The most significant upward contribution came from higher prices for soft drinks (up 2.1 percent).
For the year to May 2009, non-alcoholic beverages prices increased 6.7 percent. The most significant individual upward contributions came from higher prices for soft drinks (up 7.1 percent) and coffee (up 8.6 percent).
Fruit and vegetables
Prices for the fruit and vegetables subgroup fell 2.6 percent in May 2009, following a decrease of 2.0 percent in April 2009 and an increase of 1.6 percent in March 2009. In May, fruit prices decreased 4.9 percent and vegetable prices decreased 0.9 percent.
The most significant downward contribution came from lower prices for mandarins (down 45.3 percent), lettuce (down 18.9 percent), kiwifruit (down 49.8 percent), and potatoes (down 6.2 percent).
The most significant upward contribution came from higher prices for broccoli (up 18.7 percent).
For the year to May 2009, prices for the fruit and vegetables subgroup increased 3.1 percent. This is the smallest annual increase for the fruit and vegetables subgroup prices since May 2008, when prices increased 2.5 percent for the year. This small increase in the fruit and vegetables subgroup prices for the year to May 2009 was due to a significant annual fall in vegetable prices (down 8.0 percent). This is the biggest annual fall in vegetable prices since an 8.1 percent fall in the year to June 2007.
The most significant annual upward contributions came from higher prices for bananas (up 19.1 percent) and oranges (up 58.5 percent). The most significant downward contributions came from lower prices for tomatoes (down 34.7 percent) and lettuce (down 34.4 percent).
Other subgroups
In May 2009, higher prices were recorded for the restaurant meals and ready-to-eat food subgroup (up 0.3 percent) and the prices for the meat, poultry and fish subgroup remained unchanged overall.
Within these subgroups, the most significant upward contribution came from higher prices for poultry (up 3.1 percent).
The most significant downward contribution came from lower prices for beef (down 6.7 percent).
For the year to May 2009, prices increased 4.9 percent for the restaurant meals and ready-to-eat food subgroup, and 11.3 percent for the meat, poultry and fish subgroup.
For technical information contact:
Yvonne Fakahau or Russell Hewitt
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: June 2009 will be released on 16 July 2009.