The great news from Statistics NZ was that food prices decreased 0.3 % in December - the fifth consecutive month this has happened and the first time since December 1967!

This fall was largely driven by lower prices for the meat, poultry, and fish (down 1.2 %). Prices returned to levels last recorded in October 2008, but are still 10.1 % higher than two years ago.

The most significant individual downward contributions came from lower prices for nectarines (down 24.2 %), corned beef (down 25.6 %), and soft drinks (down 1.4 %).  The most significant upward contributions came from higher prices for potatoes (up 21.7 %), apples (up 17.6 %), and minced beef (up 8.7 %)

Meat, poultry, and fish

Prices for the meat, poultry, and fish subgroup decreased 1.2 % in December 2009, following an increase of 0.1 % in November 2009 and a decrease of 3.2 % in October 2009.

Fruit and vegetables
Prices for the fruit and vegetables subgroup increased 1.8 % in December 2009, following decreases of 2.0 % and 4.6 % in November and October 2009, respectively. The increase in fruit and vegetable prices follows four consecutive monthly decreases, and prices are now 15.7 % lower than their recent peak in July 2009.

The most significant increases in December 2009 came from higher prices for potatoes (up 21.7 %), apples (up 17.6 %), and bananas (up 4.2 %). The most significant decreases came from nectarines (down 24.2 %), cabbage (down 39.1 %), and strawberries (down 28.3 %). Nectarine prices usually fall in December months following sharp rises in November months, with the December 2009 price fall following the doubling of nectarine prices in November 2009.

For the year to December 2009, fruit and vegetable prices decreased 2.1 %. Annual falls for fruit and vegetable prices have been recorded for the past five months. Fruit prices were down 7.9 % and vegetable prices were up 2.6 % for the year to December 2009.
The most significant downward contributions to the annual fall came from lower prices for apples (down 25.8 %), potatoes (down 14.7 %), and carrots (down 23.6 %). The most significant increases came from tomatoes (up 68.9 %) and lettuce (up 26.4 %).
Other significant decreases in December 2009 came from lower prices for cakes and biscuits (down 2.8 %), soft drinks (down 1.4 %), and yoghurt (down 3.4 %). The most significant increases came from higher prices for margarine (up 8.7 %), coffee (up 5.1 %), and white sugar (up 9.7 %).
The most significant decreases for the year to December 2009 came from cheddar cheese (down 15.9 %), fresh milk (down 3.8 %), and butter (down 28.5 %). The most significant increases for the year to December 2009 were soft drinks (up 9.5 %), white sugar (up 34.4 %), and chocolate (up 5.4 %).