Fruit and veges lead increase

Food prices were 7.4% higher in July this year compared with a year earlier, Stats NZ says, and fruit and vegetable prices increased by 10%.

Stats NZ said there were price increases across all the food categories that are measured.

Grocery food was up 7.5%. Restaurant and ready-to-eat food was up 6.6%. Meat, poultry and fish were up 7.7%.

Stats NZ said grocery food was the biggest contributor to the annual movement.

‘‘Increasing prices for cheddar cheese, standard 2-litre milk, and yoghurt were the largest contributors within grocery food,’’ consumer prices manager Fiona Smillie said.

The second-largest contributor was restaurant meals and ready-toeat food.

The items within this group that influenced the increases the most were eat-in lunch/brunch meals and ethnic takeaway meals (not including Chinese takeaways).

Compared with the month earlier, July’s prices were up 2.1%.

After adjusting for seasonal effects, that was an increase of 1.1%.

Fruit and vegetables were the biggest driver of the monthly movement, up 3.1% when seasonally adjusted.

Smillie said tomatoes, lettuce and broccoli were a particular influence on that price increase.

Foodstuffs NZ managing director Chris Quin said record inflation, which hit a 32-year high in the June quarter, was affecting customers.

Foodstuffs operates New World, Four Square and Pak’n’Save.

He said half of its customers were saying they were just getting by or struggling to make ends meet.

‘‘Our customers are changing the way they shop in response to inflationary price pressures.

‘‘Almost half say they are cutting back on non-essential items. One in three are shopping around for the best deals, switching to cheaper brands and house brands or eating out less.’’

He said fruit and vegetables were always a key driver of overall grocery costs, particularly in the winter months.

He added that Foodstuffs’ cost of buying fruit and vegetables from suppliers was up 16% in July.

‘‘Our customers are changing the way they shop in response to inflationary price pressures.’’ Chris Quin Foodstuffs NZ