Food price rises despite recession

While Kiwis struggle with jobs and debt, the cost of living creeps up.

The consumers price index (CPI) increased 1.9 percent from the June 2008 quarter to the June 2009 quarter, including a rise of 0.6 percent for the June 2009 quarter.

In its June 2009 quarter report, Statistics New Zealand said it was the smallest annual increase since September 2007.

The food group (up 0.9 percent) made the biggest upward contribution to the quarterly CPI increase of 0.6 percent, driven by higher vegetable prices (up 6.9 percent).

Higher prices for vegetables were partly offset by lower fruit prices (down 6.0 percent). In the year to the June 2009 quarter, the food group increased 7.5 percent, accounting for two-thirds of the CPI annual increase of 1.9 percent.

In the last year to June 2009, food prices increased 8.4 percent.

Other hightlights of the report included an increase in transport by 0.6 percent in the June Quarter, but fell 6.6 percent in the year to the June 2009 quarter with lower prices for petrol (down 17.0 percent), international air transport (down 20.7 percent), and diesel (down 38.3 percent).

Statistics New Zealand said that if petrol and diesel prices had remained unchanged from the June 2008 quarter to the June 2009 quarter, the CPI would have increased 3.0 percent because of rises elsewhere.

The housing and household utilities group rose 0.4 percent in the June 2009 quarter, with higher electricity prices, up 1.6 percent. The housing and household utilities group rose 2.8 percent in the year to the June 2009 quarter.

This is the smallest annual increase since the year to the March 2002 quarter.

For the first time since the year to the September 1999 quarter, the annual increase for purchase of new housing (up 1.3 percent) is lower than rentals for housing (up 1.7 percent).

Comments

[Domestic Executive]

The price of growing your own doesn't seem to have this level of inflation. It just means you have to wait a bit longer for what you want to eat!