AUS
NZ
UK
CA
USA
IND
Summary
- New Zealand’s food prices soared 1.1% in April 2021 month on month.
- Higher tomato and cucumber prices were the main contributors in driving food prices up.
- An increase in minimum wage also added to the overall rise in food prices.
Food prices in New Zealand grew 1.1% month on month in April 2021, as per the latest stats from Statistics New Zealand released on May 13. Food prices were up 0.7% after seasonally adjusting them.
On an annual basis, food prices jumped 0.7% in April 2021.
Fruits and vegetable prices increased 4.8% in April 2021 compared to the previous month.
Source: © Ginasanders | Megapixl.com
While meat, poultry, and fish prices increased 0.1%, grocery food prices increased 1%.
Further, prices of non-alcoholic beverages declined 1% while restaurant meals and ready-to-eat food prices saw a 1.2% rise.
Soaring prices of tomatoes and cucumbers were the major contributors in the rise of food, fruits, and vegetable prices in April.
Tomato prices saw the biggest monthly rise in over a decade
In April 2021, tomato prices increased to a weighted average price (WAP) of $6.34 per kilo, more than 50% rise from $2.98 per kilo in March. This marked the biggest monthly increase in prices in over 10 years.
ALSO READ: Robertson Puts Economic Recovery and Kiwis’ Welfare On Priority in Budget 2021
According to Katrina Dewbery, commodity prices manger, tomato prices have been particularly poor over the last 3 months. Tomatoes NZ reported there was an abundance of it in the domestic market, as farmers failed to get their tomatoes shipped due to a lack of freight and growing shipping costs amid COVID-19.
Ms Dewbery stated that tomato growers were undergoing a lot of ambiguity about exports, which was affecting their schedule for replantation of tomato crops. From a WAP of $3.80 per kilo a year before, tomato prices have risen by 67% in April.
Source: © B2t | Megapixl.com
In August 2020, tomatoes had hit a new high, WAP of $13.65 per kilo as COVID-19 caused a scarcity.
Elevated cucumber prices partly offset by low Kiwifruit prices
Cucumber prices increased by 50% in April, leading to the overall increase in food prices. In April, the average price per kilo was $12.41 as compared to $8.25 in March.
DO READ: Is NZ Economy Under Strain? Here's What ANZ Business Outlook Survey Says
The rise in prices was partly compensated by reduced Kiwifruit prices, which were down by 28% last month. Kiwifruit is a strongly seasonal crop, with prices peaking in March as the season draws to a close.
Higher minimum wages also added to increased food costs
On April 1, the minimum wage jumped by $1.10, from $18.90 to $20 per hour. This was illustrated in elevated restaurant and ready-to-eat food costs, which increased 1.2% month on month.
As per Ms Dewbery, restaurant meals and ready-to-eat food prices had increased by over 1% in October 2010, when the GST was raised to 15%, resulting in a 1.9% rise.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)