Following a 1.4 percent rise in June and a 0.6 percent rise in May. food prices fell 0.7 percent in the month of July 2014, Statistics New Zealand reported.
Lower prices were noted in meat, grocery food, fruit and vegetables, according to prices manager Chris Pike said.
The fall in meat, poultry, and fish prices (down 2.2 percent) reflects lower prices for beef (down 4.4 percent), which fell from its highest recorded level in June 2014. Processed meat (down 2.8 percent) also fell, influenced by ham.
Meanwhile, grocery food prices fell 0.7 percent, influenced by lower prices for food additives and condiments (down 4.3 percent), mainly due to sauces. Lower prices were also recorded for breakfast cereals (down 6.3 percent) and some dairy products (influenced by yoghurt). Higher prices were recorded for bread (up 2.6 percent).
Fruit and vegetable prices fell 0.9 percent. Lower prices for tomatoes and avocados were partly offset by higher prices for bananas and capsicum. The price of bananas rose 16 percent after four consecutive monthly price falls.
New Zealand’s food price index (FPI) measures the rate of price change of food and food services purchased by households. Statistics NZ has completed a review of the FPI as part of a wider, three-yearly consumers price index review. The review involved updating the basket of representative food items being tracked for the FPI, and reviewing the relative importance of food items in the basket.