Food prices fell last month as the cost of bananas dropped to their lowest level in five years, and tomatoes fell back from their peak recorded during July.
Statistic New Zealand's Food Price Index shows food prices fell 1.3 per cent during the month, but were still up 6.6 per
cent on the same period last year.
Statistics NZ prices manager Chris Pike said the cost of tomatoes fell 25 per cent in August after soaring to $13 a kilogram in July, while the cost of bananas fell 21 per cent during the month.
Four of the five food subgroups recorded price falls in August 2011. The meat, poultry, and fish subgroup fell 0.9 per cent, while the cost of fresh chicken fell 4.2 per cent due to more discounting than in July.
In August, grocery food prices fell 0.3 per cent, reflecting lower prices for cheese (down 5.4 per cent), cakes and biscuits (down 2.7 per cent), and yoghurt (down 6.2 per cent after peaking in July).
