14 Feb 2017

How do you like them apples? - Food prices soar in January

2:48 pm on 14 February 2017

The cost of food has had its largest monthly jump in nearly eight years, led by record apples prices.

apples

Apples cost $5.04 per kilogram in January. Photo: 123RF

Official figures show prices rose 2.8 percent in January compared with the previous month.

Apples usually rise in January, but a shortage has pushed them to record highs in nominal terms.

"Apple prices usually rise in January months and are now at their highest level ever - with a kilo of apples at $5.04 compared with $3.60 last month, a rise of 40 percent," Statistics New Zealand consumer prices senior manager Jason Attewell said.

Apple prices were $3.95 a kilo a year ago.

Household budgets faced higher prices across most food items.

Fruit prices rose 12 percent, while vegetable prices rose 5.9 percent with seasonally higher prices for broccoli and carrots.

Grocery food prices rose 2.4 percent due to more expensive chocolate and milk, while the cost of meat and fish also increased, led by lamb and chicken.

For the year to January, food prices increased 1.4 percent.

Higher prices for vegetables, milk, and butter led the way.

"Milk prices rose 5.5 percent in the year, from $3.29 a year ago to $3.47 for two litres of blue-top milk. Milk prices have had annual increases since October 2016," Mr Attewell said.

Meat prices declined, thanks to lower chicken and pork prices, while breakfast cereals and cheese edged back.