New Zealand released the country’s FPI for the month of April, showing that food prices held almost steady in April rising just 0.1 per cent. This was a smaller increase compared to the 0.3 percent increase in March. Meanwhile, food prices are up 6.1 per cent in the past year.
The annual increase included the 2.2 per cent jump in October last year, due to the GST hike.
When looking at the break down of the index in detail, we see that over the year, prices rose across the board, including a 9.3 per cent rise in milk prices, and also lamb was up almost 24 per cent. New Zealand is a large exporter of lamb meat.
Statistics New Zealand said grocery foods were up 1 per cent in April alone, reflecting a near 13 per cent lift in the price of margarine, and bread up 2.1 per cent.
Despite the increase in most staples, fruit and vegetable prices fell 3.3 per cent in April, with lettuce and kiwifruit down sharply. Kiwifruit was down more than 27 per cent, following a usual seasonal pattern as the new season’s crop came on to the market. The kiwi fruit is one of the most exported fruit from New Zealand, across the world.
Statistics New Zealand releases the FPI on a monthly basis. Although food is among the most volatile consumer price components, this indicator garners some attention because food prices contribute to inflation data.
The release of the news did not have much impact on the New Zealand Dollar. It has been declining since yesterday, affected by the fall in commodity prices. The kiwi is a commodity-currency.
NZDUSD is opened the Asian session at 0.7882.