Food prices fell 0.8 per cent in December, but were up 4.2 per cent from a year earlier, Statistics New Zealand (SNZ) says. The rise in food prices for the year to December included a 2.2 per cent increase in October when the Government lifted GST, while among significant price changes for the December year were a 14.2 per cent lift in fresh milk, and a 62.8 per cent rise in butter. Tomatoes fell 11.7 per cent.

Prices for the grocery food sector rose 4.9 per cent over the year, restaurant meals and ready-to-eat food added 4 per cent, fruit and vegetables were up 5.5 per cent, the meat, poultry and fish category gained 3.2 per cent and non-alcoholic beverages gained 1.8 per cent.

Significant factors in the fall in prices last month from November included a 37.1 per cent fall in tomatoes, soft drinks down 5.8 per cent, and lettuce down 19.6 per cent. Chocolate novelty bars were up 10.5 per cent in the month, apples up 14.2 per cent and sausages up 8.7 per cent, SNZ said.

Fruit and vegetable prices overall fell 4 per cent in the month, non-alcoholic beverage prices fell 2.7 per cent, grocery food fell 0.4 per cent, the meat, poultry and fish category was up 0.8 per cent, and restaurant meals and ready-to-eat food were up 0.2 per cent. The 0.8 per cent fall in December followed a decline of 0.6 per cent in November.