11 Nov 2010

Food more expensive after GST rise

12:05 pm on 11 November 2010

Food became more expensive in October, confirming that the increase in GST is being passed on to customers.

Statistics New Zealand's Food Price Index found the price of fruit and vegetables rose 4% last month.

Grocery prices rose 1.7%, the price of cakes and biscuits was up 4%, cheese increased 4.6% and fresh milk was up 2% on September prices.

In the year to October, overall food prices rose 5%, with fruit and vegetables and grocery items making the most significant increases.

Statistics New Zealand says the rise in GST from 12.5% to 15% at the start of October has had an effect.

It says two in every five food prices collected last month showed an increase of between 2% and 2.5%.

Bad weather in September also played a part.