Food prices pushed up in July

PRICEY PRODUCE: Higher dairy prices and a winter increase in the cost of vegetables pushed food prices up in July.

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Higher dairy product prices for milk and yoghurt and a winter increase in vegetable prices pushed food prices up 1.6 per cent in July Statistics New Zealand figures show.

This follows a 1.3 percent increase in June and a fall of 0.7 percent in May.

The fruit and vegetables subgroup rose 8.7 per cent in July due to a seasonal rise in vegetable prices.

Higher lettuce (up 44.9 per cent) and tomato (up 13.9 per cent) prices were the main contributors.

Vegetable prices normally increase in winter months, with lettuce prices typically peaking in July.

"Vegetable prices rose 29 per cent over June and July this year, which is about the same as the increase over June and July last year," Statistics New Zealand's prices manager Chris Pike said.

Grocery food prices rose 1.2 per cent in July 2010.

The major contributors to the increase were fresh milk (up 5.9 per cent, on top of a 5.1 per cent increase in January) and yoghurt (up 7.0 per cent, influenced by reductions in some package sizes).

- © Fairfax NZ News