It noted that food prices usually rise in January due to seasonally higher fruit and vegetable prices – after adjusting for seasonality, food prices rose 0.4 percent.

Higher prices for all subgroups contributed to the rise, with the most significant effect from fruit and vegetables. Fruit and vegetable prices rose 4.4 percent, influenced by seasonally higher prices for strawberries, apples, and tomatoes. After seasonal adjustment, fruit and vegetable prices were down 0.7 percent.

Grocery food prices increased 1.6 percent, influenced by fresh milk (up 4.9 percent), chocolate (up 5.0 percent), and plain biscuits (up 14 percent). “The average price of two litres of fresh milk increased to $3.29, from its previous low of $3.13 in November and December 2015,” consumer prices manager, Matt Haigh said.

Meat, poultry, and fish prices rose 3.3 percent, influenced by higher prices for most meat products – including chicken (up 10 percent) and beef (up 2.9 percent). The average price of 1 kilogram of chicken breasts increased from $14.62 in December 2015 to $15.45 this month.

Food prices remain lower than a year ago

Despite the rise in monthly food prices, prices are still 0.6 percent lower than a year ago. The fall was led by lower grocery food prices (down 2.1 percent), due to lower prices for fresh milk (down 9.0 percent), cakes and biscuits (down 6.2 percent), and yoghurt (down 11 percent). The fall was partly offset by price rises for chocolate and cheese.

Fruit and vegetable prices decreased 1.2 percent over the year. A decrease of 4.7 percent for vegetables was partly offset by a rise of 3.0 percent for fruit. Prices for non-alcoholic beverages, and for restaurant meals and ready-to-eat food increased over the year – by 0.2 percent and 2.0 percent, respectively.