It's all about economics
OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a 'please explain' from her former employer Fonterra.
In October 2023, the annual increase was due to price rises across the five broad food categories measured by Stats NZ.
Price movements for all five groups for the 12 months to October 2023 were: grocery food (up 7.9%), restaurant meals and ready-to-eat food (up 7.7%), non-alcoholic beverages (up 5.7%), meat, poultry, and fish (up 3.3%), and fruit and vegetables (up 3.3%).
“The largest contributing food group was grocery food, mainly driven by higher prices for fresh eggs, potato crisps, and yoghurt,” says consumer prices manager James Mitchell.
However, monthly food prices fell 0.9% in October 2023 compared with September 2023. After adjusting for seasonal effects, they fell 0.1%.
“Prices fell across the board in October, with only dining out and takeaway food being more expensive than in September,” says Mitchell.
The fruit and vegetable subgroup was the largest contributor to the monthly fall, followed by grocery food.
The grocery items that contributed the most to the monthly fall were cheese, white bread, and muesli bars.
