Food prices in New Zealand experienced a minor decrease of 0.1 percent from October to November, with an annual rise of 1.3 percent. The reduction was marked by a 7.9 percent decrease in vegetable prices, although fruit prices saw a 4 percent increase. Nicola Growden, Stats NZ's prices and deflators spokesperson, noted, "This was the third consecutive month that we have seen price falls for vegetables, alongside rising prices for fruit." Specific changes included lower prices for tomatoes, broccoli, and cucumber, contrasted with higher prices for apples, grapes, and kiwifruit.
Ajay Jina of Jina's World of Fresh Produce commented on the seasonal shifts impacting fruit prices, highlighting the transition period for apples and kiwifruit and the importation of grapes. He also mentioned the forthcoming abundance of New Zealand summer fruits like nectarines, peaches, apricots, and plums, attributing the expected price drops to increased production. Jina anticipated cherries to become cheaper and more plentiful post-Christmas.
Vegetable price reductions were attributed to favorable weather conditions, a significant improvement over the previous year's challenges such as Cyclone Gabrielle and the Auckland floods. Jina remarked on the exceptional growing conditions leading to more reasonable prices, a rarity in recent years. However, he also noted an overall increase in grower costs.
Other factors influencing the November food price index included lower prices for boxed chocolates, chocolate biscuits, and steak, slightly offset by higher prices for cheddar cheese and instant coffee. Westpac senior economist Satish Ranchhod provided an analysis of the broader inflation trends, suggesting a contained inflationary environment as the year concludes.
Source: RNZ