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Love Is ... A Juicy Steak

Posted on: Tuesday, 14 February 2006, 15:00 CST

By ALLEN, Sue

The cost of giving your loved one a box of chocolates on Valentine's Day may have risen, but a steak dinner should be more within reach, according to Statistics New Zealand.

Figures released yesterday showed the food prices index rose 0.7 per cent in January, following increases of 0.6% and 0.3% in December and November.

Fruit and vegetable prices were up 2.9% for the month, driven up by a 14% rise in potato prices and a 17.5% hike in citrus prices.

The price of boxed assorted chocolates went up 10.8% and apples rose 8.5%.

Grocery food, soft drinks and confectionery prices were up 0.7% for the month, with the biggest rises found in dairy products, up 1.4%, and bread, up 1.7%.

Horticulture New Zealand's chief executive, Peter Silcock, said fruit and vegetable growers had been struggling for the past few years with rising costs of fuel, electricity and labour and low prices paid for products.

"So any increase now is more likely to be an adjustment to bring prices more in line," Silcock said.

Although "still good value for money", Silcock advised people to shop around for the best value on fruit and vegetables, particularly on seasonal products.

Meat, fish and poultry prices fell 0.2% in January compared with December.

The cost of chicken fell 3.7%.

For the year to January food prices increased 2.3%, the largest jump since August 2002.

Prices went up for all sub- groups: grocery food; soft drinks and confectionery; meat, fish and poultry; restaurant meals and ready- to-eat food; and fruit and vegetables.

The biggest price rise was in meat, fish and poultry, which rose 4.3% in the year to January.

Richard Umbers, the managing director of New Zealand's second- largest supermarket chain Progressive Enterprises, said the fiercely competitive nature of the supermarket industry meant price increases were not being passed on to customers.

"I think the competitive nature of the industry is holding the inflationary tendency of prices down in the grocery sector."

Supermarkets were keeping costs down by being more fuel efficient, using technology better and improving distribution models, he said.

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Source: Press, The; Christchurch, New Zealand

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