Food prices decreased 0.5% in the year to the end of June, influenced by lower grocery food prices which were down 2.3%:
Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent.
“The average price of a kilo of cheddar cheese was $7.68 in June 2016, down from $9.12 in June 2015. This was the lowest price since September 2007,” consumer prices manager Matt Haigh said.
Meat, poultry, and fish prices decreased 0.9 percent in the year. Lower prices for chicken (down 5.3 percent), processed meat (down 2.9 percent), and lamb (down 5.2 percent) were partly offset by higher prices for beef (up 4.3 percent).
Fruit and vegetable prices increased 2.0 percent over the year, with continued record high prices for avocados (up 146 percent), partly offset by lower prices for tomatoes (down 20 percent).
Restaurant meals and ready-to-eat food increased 1.6 percent in the year to June 2016. . .
The low price of dairy products reflects the low price farmers are getting for milk.
When the milk price was high there were calls for farmers to subsidise consumers.
No-one is calling for consumers to subsidise farmers, and nor should they. But I hope everyone remembers this when, as sooner or later they will, dairy prices rise again.