16 Apr 2012

Food prices fall in March

1:01 pm on 16 April 2012

The cost of food fell last month as fruit and vegetable prices dropped.

Overall, prices fell 1% in March, figures from Statistics New Zealand show.

Fruit and vegetable prices were down 4.2%, with apples, grapes, pumpkin and cauliflower prices down by 20% or more.

Lower prices for meat, poultry and fish were the next largest contributor to the drop.

The price fall comes after a 0.6% increase in February.

It takes the annual rise in food prices down to 0.2% over the past year.

As a result of the food price fall ASB economists have cut their forecasts for March quarter inflation to 0.5% from 0.6%.

The price of food accounts for 19% of the Consumers Price Index.