Food prices fell for a fourth month straight in December, led by a drop in non-alcoholic beverages which offset higher meat, poultry and fish prices.
The Food Price Index fell 0.2 per cent in the month, according to Statistics New Zealand following a 0.8 per cent decline in November. The current level of 1243 marks the lowest point on the index in almost two years.
I’ve calculated annual food price inflation since the series began in 1960, below.
So in one year, food prices increased 25%. I guess there was lots of money being printed that year.
If we look at post 1990 only:
So three big spikes post 1990. One was in 2001, another in 2008 and the third in 2011. The latter one being impacted by the GST increase.
If you look at food inflation over each three year approx electoral term, the cumulative annual increases were:
- 1991 – 1993: -0.1% (go Ruth)
- 1994 – 1996: 4.3%
- 1997 – 1999: 4.2%
- 2000 – 2002: 11.1%
- 2003 – 2005: 2.7%
- 2006 – 2008: 18.4%
- 2009 – 2011: 6.6%
Annual food inflation in 2012 is -0.9% so far. Useful to recall this when you see stories about the rising cost of food!Tags: food prices, inflation