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Summarised by Centrist
Only seven of the 147 food items tracked by Stats NZ are cheaper than they were 10 years ago, according to analysis of long-term food price trends.
The biggest long-term price drops were in avocados, onions, frozen prawns and some packaged pasta meals. Over the past year, cucumbers, olive oil, carrots and cauliflower recorded declines.
But almost every other tracked food item increased in price over the same period.
Egg prices rose 151 per cent over the decade, and butter increased
143 per cent, sultanas 116 per cent, canned salmon 101 per cent, and bread 90 per cent. The average price of fish and chips climbed from $6.09 in 2016 to $10.77 this year.
Infometrics chief economist Brad Olsen said the move away from battery farming toward free-range eggs had pushed up operating costs. ANZ economist Matt Dilly said butter prices surged after poor weather affected major dairy exporters, while
Turkish crop damage contributed to higher dried fruit prices.
Despite relatively soft food inflation figures in April, economists warned further increases are likely as higher fuel prices move through supply chains.
Olsen said diesel prices had nearly doubled in the past two months and expected the impact to become more visible over coming months. Westpac economist Satish Ranchhod said higher fuel, fertiliser and shipping costs would likely place “more pronounced upward pressure” on food prices later in the year.
