17 Jan 2011

Food prices lower for second month in row

8:01 pm on 17 January 2011

Food prices have fallen for the second month in a row.

Prices fell 0.8% in December, following a 0.6% drop in November.

In both months, seasonal falls in vegetable prices were the key contributor.

Vegetable prices fell 7.9% in December, resulting in cheaper tomatoes, lettuces, capsicums, cabbages and broccoli.

Grocery food prices and dairy also fell in December, but meat, poultry and fish prices increased.

In the year to December, overall food prices rose 2.4%, just over half of which came in October when the goods and services tax (GST)increased from 12.5% to 15%.