Food inflation falling

Press, 16 December 1985, Page 14

Food inflation falling

Wellington reporter The 0.2 per cent rise in food prices last month was further evidence that inflation had fallen significantly in the last few months, the Minister of Trade and Industry, Mr Caygill, has said. Mr Caygill said the annual rate of food inflation was considerably less than the level of wage increases now being settled. He predicted the annual rate was likely to fall markedly as general price inflation continued to fall.

The 0.2 per cent result was well below the rise for any other of the last 12

months with the exception of the nil movement in October. The annual rate of food inflation peaked at 16 per cent at the end of June. The Opposition spokesman on trade and industry, Mr Bolger, said that although the increase in food prices had slowed, people were paying 20 per cent more for food than they were when the National Government went out of office. The 14.1 per cent annual rate meant food was in-

creasing at 2.5 times the rate it was in July, 1984, he said.