Food inflation

The latest Food Price Index is out and food prices dropped this month. What I tend to focus on in the long-term change in prices.

In the last four years (Feb 2009 to Feb 2013) food inflation was 7.6% and fruit and vegetable prices went up 9.5%. That is equivalent to annual food inflation of 1.8% and fruit and vegetable inflation of 2.3%.

For the four years prior (Feb 2005 to Feb 2009) food inflation was 20.8% and fruit and vegetable prices went up 22.1%. That is equivalent to annual food inflation of 4.8% and fruit and vegetable inflation of 5.1%.