Food price inflation still 10.3% as Bollard calls for price cuts

Food prices rose 0.8% in November from October, with New Zealanders paying more for groceries, restaurant meals, meat and non-alcoholic drinks, figures from Statistics New Zealand show. In the year to November, food prices rose 10.3%. Grocery food prices rose 11.5%; fruit and vegetable prices were up 16%; meat, poultry and fish up 9.7%; and non-alcoholic beverage prices rose 7.6%. Over the year, bread prices rose by 18.3%; cheddar cheese prices rose 35.2%; and the price of potatoes rose by 43.6% This latest food price increase reflects Reserve Bank Governor Alan Bollard's speech on Wednesday calling for the food industry (along with others) to "react to lower international commodity prices with price cuts." Bollard called on New Zealand firms to play their role in the economy's recovery by cutting prices. "Everyone needs to play their part," he said. The only food group that experienced overall price decreases was the fruit and vegetables group, with many vegetable prices falling significantly. However, these significant drops were offset by the price of apples rising 17.5%, nectarine prices rising by 57.2% and carrot prices rising 26.3% in November. Tomato prices fell 29.6% from October, lettuce fell 32.4% and broccoli fell 24.2%. Strawberry prices fell by 36.9%. Grocery prices rose by 1%, with yoghurt prices up 6.8% and bread prices rising 1.7% since October. Meat, fish and poultry prices rose 0.3% in the month of November, non-alcoholic beverage prices rose 1.8% and the average cost for restaurant meals rose by 0.6%.