An increased focus on exports for New Zealand tomatoes could see the sector double its 2014 value by 2020.
The fall was mainly influenced by lower fruit and vegetable prices (down 3.7% after seasonal adjustment). Seasonally adjusted food prices fell 0.5% in May 2016.
"Tomatoes and potatoes influenced the drop in vege prices," consumer prices manager Matt Haigh says. "The average price for a kilo of tomatoes fell to $6 in May compared with $6.70 in April."
Meat, poultry and fish prices rose 0.2%, with higher prices for lamb (up 5%). The average price for a kilo of lamb chops was $14.28, up 8% from April 2016.