NZ food prices steady in October
Cheaper fruit and more expensive vegetables pushed produce prices down 0.1% in the month.
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New Zealand food prices were little changed in October after adjusting for typical seasonal patterns.
Food prices were unchanged in October on a seasonally adjusted basis, following a 0.2% decline in September and a 1.4% jump in August, Statistics NZ said. On an unadjusted basis, food prices slid 0.8% in the month due to seasonally lower prices for fruit and vegetables.
Cheaper fruit and more expensive vegetables pushed produce prices down 0.1% in the month, while grocery items, which account for more than a third of food prices, were also down 0.1%. Meat, poultry and fish prices increased 0.8%, while non-alcoholic beverage prices fell 1.2%, leaving the overall index unchanged in the month.
The food price index accounts for about 19% of the consumers price index, which is the Reserve Bank's mandated inflation target when setting interest rates. Today's data showed food prices rose 0.6% in the year through October, impacted by higher prices for restaurant and ready-to-eat meals.
The consumers price index increased at a 0.4% annual pace in the September quarter, the eighth straight quarter below the Reserve Bank's 1-3% target band. However, the bank sees it coming back into its band soon with a 1.1% increase forecast for the December quarter.
The consumers price index for the December quarter will be released on January 17 next year.
(BusinessDesk)
Tina Morrison
Fri, 11 Nov 2016
Fri, 11 Nov 2016
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NZ food prices steady in October
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