NZ: Seasonal fruit and veg drives down food prices
The food price index fell 0.3 per cent in February, following a 1.9 per cent fall a month earlier, in its sixth decline in seven months, according to Statistics New Zealand. Annual food prices decreased 0.1 per cent.
Fruit and vegetable prices fell 1.6 per cent in February, with cheaper apples and grapes.
Food prices account for almost 19 per cent of the consumers price index, which is sitting below the Reserve Bank's target band at 0.9 per cent.
However, drought in New Zealand and in the US, are expected to drive prices up goign forwards.
Source: money.msn.co.nz; radionz.co.nz
