Cost Of Dairy Hurts Shoppers' Pockets
NEW ZEALAND - Cheese and butter were the main culprits behind a rise in the latest food price index.
13 November 2007
1 minute read
Overall, food prices increased 0.6 per cent in the last month, Statistics New Zealand said today.
Cheese prices rose 7.3 per cent and butter 23 per cent in October, reflecting the strong rise in dairy prices internationally.
New Zealand Food & Grocery Council's commercial director, Lindsay Davidson, said that the trend will not just be limited to the food industry but would affect several other sectors as well.
"The rise in commodity prices is part of a global trend triggered by rising oil prices and increasing use of biofuels," he said.
"The rapid hike in fuel prices has greatly affected transportation costs which in turn are affecting commodity pricing."
"Consumers will have to brace for more increases in food prices," he warned.
The grocery food subgroup rose 1.5 per cent. Milk (up 3.0 per cent) and chocolate (up 3.8 per cent), also contributed to the rise in grocery prices. The main downward contribution came from lower prices for chocolate biscuits (down 7.5 per cent).
