Food prices at 32 year high

Just before Jacinda resigned, this news broke:

Experts say there is no evidence inflation pressures are easing after Stats NZ revealed annual food prices jumped the highest in 32 years.

Food prices rose 1.1 per cent in the month of December and were 11.3 per cent higher than a year earlier, the highest increase since April 1990.

ANZ economist Finn Robinson said, “What we’re seeing in that data is no evidence that inflation pressures are easing. At this stage, it’s not encouraging.”

He said Stats NZ’s findings were much stronger than expected.

“When you consider that food prices are usually flat or falling in December because of seasonal patterns in vegetable prices, to see such a strong positive number in December month, that’s a very strong print for the data.”

So a 32 year high for food inflation. Can this all be blamed on Putin?

New Zealand's food price inflation just hit 11.3% y/y – and that's before the full effects of cyclone Hale and egg & CO2 shortages kick in. It appears to be a home-grown problem to an unusual degree, comparing with world food price indexes (converted to NZD terms). pic.twitter.com/dqe2gpAHzp

— Sharon Zollner (@sharon_zollner) January 18, 2023

This graph is fascinating as it shows world food prices started to decline significantly around two months ago, yet food prices in New Zealand are still skyrocketing. So the problem is mainly domestic.

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