In New Zealand, food price inflation is at its highest level in 36 years. Stats NZ's food price index rose 12.5 percent in the year ended April, the highest annual rate since late 1987. The main drivers over the year were a 14 percent rise in grocery prices, and more than 22 percent for fruit and vegetables prices. The second-largest contributor to the annual movement was fruit and vegetables. The increase was driven by tomatoes, avocados, and potatoes.
The Reserve Bank's attempt to get price rises under control via interest rates appears to be working on overall inflation, which fell to below 7 percent in the most recent quarter. But Infometrics principal economic economist Brad Olson said it the food price index "continues to accelerate".
Underlying food price inflation was probably the highest it has been in more than four decades, he added.
Source: rnz.co.nz
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