Drop in food index

Press, 10 December 1982, Page 10

Drop in food index

PA Wellington The Food Price Index tor November has dropped 0.1 per cent from the month before, according to figures supplied by the Department of Statistics. The annual rise from November 1981 is 7.7 per cent, compared with a rise-of 8.5 per cent from October 1981 to October 1982. On a base 1980 quarter of 1000, the index dropped from 1256 in October of this year to 1255 in November. The main contribution to the fall came from fresh fruit and

vegetables (minus 3.5 per cent). Most of the other sections of the index made onlv minor changes, or none at all. Cereals and cereal products accounted for the largest rise (plus 0.8 per cent) along with take-away and restaurant food (plus 0.7 per cent). Labour’s Shadow Minister of Consumer Affairs, Mrs Ann Hercus (Lyttelton), said that the latest figures should cause the Government serious worry because it was the price of food items that were not frozen that had fallen.

Most of these items were meat and tresh fruit and vegetables. “The pattern of the last few months suggests, therefore, that it is not the freeze itself which is causing lower prices, but the combination of a mild winter and the seasonal impact of cheaper fruit and vegetables and other items not covered by the freeze." Mrs Hercus said. She said that the 0.1 per cent drop was “tiny," given that food prices were expected to drop substantially during November.