Meat and vegetables power food price rise
Thu, 25 Aug 2011 11:32a.m.
By Dan Satherley
Food prices have risen 7.9 percent in the past year, most of it down to the increasing cost of vegetables.
And the rising cost of food is gaining pace – in May prices rose 0.5 percent, in June, 1.4 percent and in July, 2 percent.
Vegetables account for much of the rise, up 15.9 percent on a year ago.
Tomatoes are up 34 percent, lettuce 20.7 percent, broccoli 66.6 percent, capsicums 28.6 percent and cucumber, up 20.7 percent.
"Prices for tomatoes and capsicum were influenced by lower imports from flood-affected Queensland," says ASB economist Chris Tennant-Brown.
Only nectarines bucked the trend, down 38.4 percent.
Meat and poultry is up 6.8 percent – chicken alone up 8.6 percent and lamb, now at record prices, up 23.9 percent.
Yoghurt is also at a record high, up 14.7 percent in the last year.
The total 7.9 percent increase in food prices includes the 2.2 percent increase caused by the Government's raising of GST to 15 percent.
"Food price inflation has picked up over recent months, reflecting high global agricultural prices as well as some weather related disruptions earlier in the year," says Mr Tennant-Brown.
"While there has been some easing in soft commodity prices recently, prices are expected to remain high due to strong global demand."
Statistics NZ says of every $100 spent on food, only $14 is spent on vegetables. Takeaways and eating out accounts for $21, meat and poultry $16, and grocery items $38.
The remaining $11 is spent on non-alcoholic beverages.
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29/08/2011 10:16:00 p.m.
Jack Ramaka wrote:
This is what happens when you get the food supply being controlled by just two companies Foodstuffs and Progressive.
25/08/2011 2:28:01 p.m.
thanks to john key increasing gst on everything including food while he also cuts jobs is the reason that 231,000 kiwi left nz last month alone. inflation and unemployment is a recipe for disaster. labour must win in nov if nz is to have any hope of a better future like we all remember under labour each time they are in. poverty is keys legacy.
25/08/2011 1:15:23 p.m.
I agree Alien. I have Broccoli, cauliflower, lettuce and silverbeet all ready to eat now. Global trading/exporting of food has not been a good thing as it just puts the prices up for the locals.
25/08/2011 11:45:51 a.m.
so basically what we have is summer produce is up, which is why you buy for the season, not buy out of season. I suggest if you want to eat healthy you plant a vegetable garden because there is a global food shortage that will put the prices up more. If you do not have land for a garden, then plant in pots.
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