Food prices in October 2008
Food prices fell 0.3 percent in October 2008, following increases of 0.6 percent and 2.7 percent in September and August 2008, respectively.
In October 2008, lower prices were recorded for the following subgroups: fruit and vegetables (down 6.0 percent), and non-alcoholic beverages (down 0.4 percent). Higher prices were recorded for the meat, poultry and fish (up 2.4 percent), grocery food (up 0.6 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 lettuce (down 50.7 percent), and tomatoes (down 24.9 percent).
The most significant individual upward contributions came from higher prices for potatoes (up 20.6 percent), beef (up 5.4 percent), and prepared meats and smallgoods (up 6.0 percent).
| Index Points Contribution |
| Subgroup |
August 2008 to
September 2008 |
September 2008 to
October 2008 |
Fruit and vegetables
Meat, poultry and fish
Grocery food
Non-alcoholic beverages
Restaurant meals and ready-to-eat food |
-3.73
7.11
2.34
0.30
0.75 |
-10.30
4.70
2.67
-0.49
0.58 |
| Food Price Index |
6.78 |
-2.85 |
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 September and October 2008. 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 |
August 2008 to
September 2008 |
September 2008 to
October 2008 |
| Increase in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price increase (percent) |
97
61.8
64.9
22.6
3.0 |
85
54.1
57.3
21.4
3.2 |
| No change in price |
Number of items
Percentage of all items
Percentage of expenditure weight |
0
0.0
0.0 |
4
2.5
3.4 |
| Decrease in price |
Number of items
Percentage of all items
Percentage of expenditure weight
Index points contribution
Weighted average price decrease (percent) |
60
38.2
35.0
-15.8
3.9 |
68
43.3
39.3
-24.3
5.3 |
The distribution of item-level movements shows that:
- the percentage expenditure weight of items that decreased in price rose, while the percentage expenditure weight of items that increased in price fell
- the weighted average price decrease rose significantly, while the weighted average price increase rose slightly
- the weighted average price decrease is now greater than the weighted average price increase.
These movements resulted in a 0.3 percent decrease in the October 2008 FPI, compared with a 0.6 percent increase in September 2008.
Annual movements
Food prices increased 9.9 percent in the year to October 2008, following increases of 10.8 percent and 10.6 percent in the years to September and August 2008, respectively.
All five of the food subgroups increased in the year to October 2008. The most significant upward contribution came from higher prices for the grocery food subgroup (up 11.9 percent), followed by meat, poultry and fish (up 11.0 percent), fruit and vegetables (up 12.5 percent), restaurant meals and ready-to-eat food (up 6.4 percent), and non-alcoholic beverages (up 4.7 percent).
Within these subgroups, the most significant upward contributions came from higher prices for ready-to-eat food (up 7.2 percent), bread (up 20.1 percent), beef (up 18.2 percent), cheese (up 29.9 percent) and cakes and biscuits (up 16.1 percent).
The most significant downward contribution came from lower prices for tomatoes (down 24.9 percent).
| Annual Index Points Contribution |
| Subgroup |
October 2007 to
October 2008 |
Grocery food
Meat, poultry and fish
Fruit and vegetables
Restaurant meals and ready-to-eat food
Non-alcoholic beverages |
47.31
19.67
17.48
14.89
4.65 |
| Food Price Index |
104.00 |
Note: Index points contributions may not sum to totals due to rounding.
Fruit and vegetables
Prices for the fruit and vegetables subgroup decreased 6.0 percent in October 2008, following a decrease of 2.2 percent in September 2008 and an increase of 9.6 percent in August 2008. Vegetable prices decreased 11.4 percent in October 2008, while fruit prices increased 4.4 percent.
The most significant downward contributions came from lower prices for lettuce (down 50.7 percent), tomatoes (down 24.9 percent) and broccoli (down 16.3 percent). The most significant upward contribution came from higher prices for potatoes (up 20.6 percent).
For the year to October 2008, fruit and vegetable prices increased 12.5 percent. The most significant individual upward contributions came from higher prices for potatoes (up 41.7 percent), apples (up 43.4 percent), and cabbage (up 138.1 percent). The most significant downward contribution came from lower prices for tomatoes (down 24.9 percent).
Meat, poultry and fish
Prices for the meat, poultry and fish subgroup increased 2.4 percent in October 2008, following increases of 3.7 percent in September and 2.6 percent in August 2008, respectively.
The most significant upward contributions came from higher prices for beef (up 5.4 percent), and prepared meats and smallgoods (up 6.0 percent).
For the year to October 2008, prices for the meat, poultry and fish subgroup increased 11.0 percent. The most significant upward contributions came from higher prices for beef (up 18.2 percent), and poultry (up 13.4 percent).
Other subgroups
In October 2008, lower prices were recorded for the non-alcoholic beverages subgroup (down 0.4 percent). Higher prices were recorded for the grocery food (up 0.6 percent), and the restaurant meals and ready-to-eat food (up 0.3 percent) subgroups.
Within these subgroups the most significant individual downward contributions came from lower prices for cheddar cheese (down 4.0 percent), chocolate bars and blocks (down 2.2 percent), and fruit juice (down 3.3 percent).
The most significant upward contributions came from higher prices for bread (up 3.2 percent), ice cream bought in bulk (up 9.3 percent), and potato crisps (up 3.8 percent).
For the year to October 2008, prices for the grocery food subgroup increased 11.9 percent, the restaurant meals and ready-to-eat food subgroup increased 6.4 percent, and the non-alcoholic beverages subgroup increased 4.7 percent.
For technical information contact:
Cindy Qin or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz
Next release ...
Food Price Index: November 2008 will be released on 11 December 2008.