13 Oct 2016

Cheaper veggies push down food prices

12:22 pm on 13 October 2016

Food prices fell last month driven by cheaper vegetables and a drop in chicken prices.

supermarket vegetables

Photo: 123RF

Official figures show the food price index fell 0.9 percent on August, the biggest monthly fall in nearly three years.

The annual rise in food prices eased to 0.1 percent.

The index was driven by a 5 percent fall in fresh vegetables, while chicken prices slumped to an 11-year low because of an oversupply in the market.

Food prices make up about a fifth of the overall consumer inflation measure, which is expected to fall again when official numbers are released next week.