15 Apr 2015

Rapid increase for food prices

3:56 pm on 15 April 2015

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Food prices have increased at the fastest pace in more than three years.

Cheaper fruit and vegetables helped bring down food prices.

Cheaper fruit and vegetables helped bring down food prices. Photo: RNZ

Official figures show prices have risen by 1.9 percent in the year to March, which is the largest annual increase since December 2011.

Fruit and vegetable prices are up 7 percent compared with a year ago, with a global shortage driving banana prices up to their highest level, since records began.

Meat and fish prices are also higher, with beef rising 8 percent, in the last year.

However, senior economist at Westpac, Michael Gordon, said while prices were up, the increase was still quite modest.

March's food prices rose just 0.1 percent, following a 0.7 percent fall in February.

Food prices mad up about 19 percent of the consumer price index, which was a measure of inflation.

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