Food-price fall last month

Press, 11 September 1987, Page 1

Food-price fall last month

Political reporter Average food prices fell 0.3 per cent in August, helped by a 6.2 per cent reduction in the .cost .j:: of fresh fruit and vegetables. the slowest rate since the early 1970 s — excluding the price freeze. The Opposition said the August fall was "artificial” — a product of an unusually mild winter and a high New Zealand dollar. Temporary drops in the food price index had occurred before in Labour’s terms, but had then surged up again, it said. The food index, produced by the Statistics Department, is designed to allow for seasonal movements in food and vegetable prices.

The Minister of" Trade and Industry, Mr CaygUl, admitted, however, that the good winter growing conditions were likely to have affected .wgBUdM OM ! these figures included the intro- ; • duction of GST. Mr CaygUl sal cl . . food prices had increased only 3.2 per cent" in the 10 months sinceltslntroduction. The main- decreases in the fruit and vegetable area were for potatoes, carrots, apples, and oranges. The index showed falls also in the price of poultry, jam, and beverages. Partially off-setting these decreases were rises in the average prices of beef, hogget, lamb, wet fish, biscuits, bread, restaurant meals, and take-aways.