The Consumer Price Index rose 5.1% in the year to September – the highest it’s been since the year to June 1990.
Steep rises in the price of electricity, fuel, food and electricity were the major contributers to the increase.
Food prices rose 10.8% in the year to September, the highest increase since the year to April 1990 (which included an increase in GST from 10 to 12.5%)
All five subgroups recorded upward contributions to the annual increase, with the most significant contribution coming from the grocery food subgroup (up 12.8 percent). Within this subgroup, higher prices were recorded for cheddar cheese (up 61.6 percent), bread (up 16.5 percent), and fresh milk (up 12.6 percent).The remaining four subgroups recorded the following upward contributions: fruit and vegetables (up 17.9 percent), meat, poultry and fish (up 8.8 percent), restaurant meals and ready-to-eat food (up 6.3 percent), and non-alcoholic beverages (up 6.9 percent).
The 61.6% increase in the price of chedder cheese is huge, but when the increase for milk was about a fifth of that (12.6%) it can’t be all blamed on farmers.