13 Oct 2011

Biggest monthly fall of food prices for five years

12:15 pm on 13 October 2011

The cost of fruit and vegetables has recorded its biggest monthly fall since 2006.

Statistics New Zealand says it was 8.6% cheaper to buy fruit and vegetables in September, compared with the previous month.

Overall, food prices fell for the second month in a row, dropping by 1%.

Avocado prices fell the most, down 38.4%, followed by lettuce, tomatoes, cucumber and capsicums.

But restaurant meals, non-alcoholic drinks and meat prices rose.

The biggest price hikes were for ham, up 21%, and bananas, 24%.

Overall food prices have risen by 4.7% since September 2010. The rate of GST rose from 12.5% to 15% on 1 October 2010.