Food prices rose 4.7% in the year to October but fell monthly, driven by vegetables

Food prices rose 4.7% in the year to October but fell on a monthly basis for the second straight month.

Food prices increased by 4.7% in the 12 months to October, although they fell for the second month in a row, down 0.3% thanks to lower vegetable prices.

Higher prices for the grocery food group were the largest contributor, up 4.9% on an annual basis, while meat, poultry and fish were also up 7.6% over the year and up 0.9% monthly.

Fruit and vegetable prices were up 5.4% annually but dropped by 4.4% on a month-by-month basis, the only category to record a fall, contributing to the overall monthly decrease.

“Vegetable prices fell 10.7% this month, with salad items such as lettuce, tomato, and cucumber becoming cheaper. This is the largest monthly price decrease for vegetables since November 2021,” Stats NZ prices and deflators spokeswoman Nicola Growden said.

“Although fruit and vegetable prices have fallen overall, the price[s] for fruits such as kiwifruit and apples have increased by 48.4% and 7.1% respectively.”

Grocery food was up 4.9% annually and 0.1% monthly, with the usual suspects of milk, cheese, eggs and coffee reporting high percentage increases on an annual basis.

Growden said that the price of milk had increased by 91c per two litres over the last two years, with eggs up 8.8% and coffee up 12.4% over the same period.

Non-alcoholic beverages were up 5.2% annually and 0.4% monthly, while restaurant and ready-to-eat meals were up 2.4% annually and flat on a monthly basis.

Prices for alcoholic beverages were up 0.4% annually but down 0.3% monthly, while tobacco products were up 5.4% annually and 1.3% monthly.

Rent prices, known as the stock measure of rental property, rose 1.6% annually but were flat on a monthly basis for the second consecutive time.

Electricity prices rose 11.8% in the year to October (up 0.5% monthly), with gas prices also higher, up 14.4% annually and 1.9% monthly.

Growden said there had been 11 consecutive months of price increases for both electricity and gas.

In the transport group, petrol prices were 2.6% higher in the October year (up 0.8% monthly), with diesel prices following suit, climbing 5.1% annually (up 1.1% monthly).

Domestic air transport prices were down 11% on an annual basis and fell by 10.6% monthly, reversing the increase seen in September during the school holiday period.

International air transport prices are up 0.7% annually but also fell on a monthly basis, down 6.3%.

As for accommodation, domestic accommodation prices were down 1.1% on an annual basis but lifted 2.7% monthly, while international accommodation prices are up 4.4% annually and lifted 5.4% on a monthly basis.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.

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