Food prices rose 1.9% in the year to March, the largest annual increase since December 2011, but economists say broader food price inflation remains relatively contained.
Statistics New Zealand figures released yesterday show the March month prices rose 0.1% following a 0.7% fall in February and a 1.3% rise in January.
Less discounting on items such as biscuits, yoghurt and sauces contributed to higher grocery prices, countered by lower prices for fruit and vegetables, Statistics NZ prices manager Chris Pike said.
Grocery food prices rose 1.2% in the month, with higher prices across most of the subgroup.
This was the highest monthly rise for grocery food prices since January 2013.
Higher prices for the meat, poultry and fish category were influenced by higher prices for beef in the month.
The fall in fruit and vegetable prices, down 3.1%, was influenced by seasonal price falls in both vegetables and fruit, he said.
In the year to March, fruit and vegetable prices increased 7%.
ASB senior economist Jane Turner said the March prices were higher than usual due to temporary factors related to the weather but broader food price inflation remained relatively contained.
''There is scope for further falls in prices of some grocery items, given the weakness in global commodity prices for grains and dairy.''
However, the pass-through from commodity markets through to retail was often delayed and muted, she said.
