Food inflation remains low

Stats NZ reports:

In November 2014, food prices fell 0.5 percent, Statistics New Zealand said today. This follows no change overall in October and a 0.8 percent fall in September.

“Seasonally lower vegetable prices and lower prices for bread, cheese, and chocolate contributed to the latest fall,” prices manager Chris Pike said.

That’s all good for households. And how are prices compared to a year ago?

In the year to November 2014, food prices increased 0.6 percent …

Fruit and vegetable prices increased 0.7 percent. Higher prices for lettuce, potatoes, apples, and carrots were partly offset by lower prices for tomatoes, kumara, and avocados.

This means that as people get wage and salary increases, they get to keep more of it, rather than have it chewed up by inflation.