New Zealand food prices edged up in April as the cost of takeaway food and tomatoes rose while chicken prices fell to a record low.
Statistics NZ said food prices advanced 0.1% in April from March as higher prices for ready-to-eat and grocery foods were offset by a drop for meat and many vegetables – except for tomatoes, which more than doubled in price in just two months.
"Prices for restaurant meals and ready-to-eat food usually increase steadily over time; however, these items all rose more than usual in April," Stats NZ consumer prices manager Geraldine Duoba said in a statement.
"The minimum wage increase of 75 cents to $16.50 an hour on 1 April may have been a factor, as labour costs make up a significant proportion of these businesses' costs."
Ready-to-eat food prices rose 0.7% in April, with a 1.6% increase in the price of ethnic food, a 0.7% gain in takeaway coffee, and a 1% rise in takeaway pizza.
Vegetable prices declined 1.6% in April as the price of lettuce, broccoli, and cauliflower all fell strongly, following high prices in March. After adjusting for seasonal movements, vegetable prices fell 5.1%, Stats NZ said.
"While vegetable prices fell in April, tomato prices continued to rise," Duoba said. "Tomato prices rose 41% this month, following a more than 60% rise in March."
Meat prices fell in April, with poultry prices falling 4.5%. Stats NZ said a 1kg pack of chicken pieces was $7.63 in April, down from $8.16 in March, and $8.10 in April 2017, marking the lowest price since the series began in June 2014.
Food prices in April were 2.3% higher than April last year, the statistics agency said.
For the year to April, prices for meat and poultry increased 1% with pork up 12% and lamb up 17%. Those increases were offset by cheaper poultry prices, which fell 6.8% in the latest year. Beef prices remained flat annually.
The food price index accounts for about 19% of the consumers' price index, which is the Reserve Bank's mandated inflation target when setting interest rates.
