Grocery prices fall has milk prices come down

Seasonally lower prices for fruit and vegetables also influenced the overall drop in prices. Photo / iStock

Falling fresh milk prices led the way for grocery prices to go down last month, Statistics New Zealand says.

"Grocery food prices fell 0.8 per cent in October, led by a 5.7 per cent fall in fresh milk prices," Statistics NZ consumer prices manager Matt Haigh said today.

Seasonally lower prices for fruit and vegetables also influenced the overall drop in prices.

"The average price for 2 litres of blue-top milk was $3.13 in October 2015, the cheapest since January 2008 when it was also $3.13," Mr Haigh said in a statement.

Statistics NZ said sauces and snack food prices also fell in October, and prices for cakes and biscuits rose.

Meat, poultry, and fish prices fell 1.7 per cent, reflecting lower prices for chicken and lamb. Higher pork and beef prices partly offset this.

Statistics NZ said fruit and vegetable prices fell 5.2 per cent in October, as seasonally lower prices for tomatoes, lettuce, and courgettes were partly offset by higher prices for potatoes.

Vegetable prices fell 8.3 per cent but were up 0.9 per cent after seasonal adjustment, the agency added.