Veggies lead rise in July food prices

Published: 12:00PM Thursday August 13, 2009 Source: NZPA

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Food prices rose 0.6% in July, with almost all the increase due to higher prices for vegetables as cold weather hampered growing conditions.

The figures published by Statistics New Zealand on Thursday showed vegetable prices 12.3% higher than in July last year, but not quite at the levels seen in August 2008.

For just last month fruit and vegetable prices rose 3.1%, with lettuce prices up a further 41.6% after more than doubling in June.

Prices for two-thirds of the fresh vegetables tracked in the food price index rose in July, with vegetable prices overall up 6.4%. Fruit prices fell 2.3%.

Broccoli prices rose 14.1%, while tomatoes were down 9.5%.

Grocery food prices rose 0.5% in July, while prices for the meat, poultry and fish subgroup fell 0.7%, coming off a record high in June.

Prices for cakes and biscuits rose 2.5% in July, soft drinks were up 1.6% and sausages gained 5%.

Beef prices fell 3.9% in the month, influenced by a high incidence of price specials, Statistics New Zealand said.

For the year to July, food prices rose 8.4%, with all five subgroups recording increases.

Grocery food was up 7.8%; meat, poultry and fish up 12.4%; fruit and vegetables up 12.2%; restaurant meals and ready-to-eat food up 4%; and non-alcoholic beverages up 7.1%.

Within these subgroups, the most significant annual rises were for prepared meats and smallgoods, up 19%, bread up 13.5%, and cakes and biscuits up 16.7%.

Cheddar cheese prices fell 15.9% over the year, while butter was down 21.6%.

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