Economic Week - July 13

Food prices up

Food prices rose by 0.5% in the month of June, according to Statistics NZ’s monthly Food Price Index. 
Fruit and vegetable prices were the main upward driver, increasing 5.8% for the month, with vegetables up 10.8% but fruit down 1.4%.  Meat, poultry, and fish prices were down 0.2%, with beef and veal up 4.4% and mutton, lamb and hogget down 1.5%. Grocery food prices were down 0.8%, with bread and cereals down 0.3% and milk, cheese and eggs down 2.2%.
For the year ended June, food prices were up 0.2%.  Fruit and vegetable prices were down 4.6% (with vegetables down 7.0% and fruit down 0.6%); meat, poultry and fish prices were down 0.6% (with beef and veal up 3.5% and mutton, lamb and hogget up 6.7%); and grocery food prices were down 0.1% (bread and cereals down 0.4% and milk, cheese and eggs down 1.0%).
Food prices are an important component of the wider consumer price index.  Next week sees the release of the June quarter CPI. Economists expect it to be relatively flat for the quarter with annual inflation staying around 1.1-1.2%.

Retail spending up

When adjusted for seasonal effects, retail card spending rose a seasonally-adjusted 0.4 percent in June 2018, according to Statistics NZ’s monthly Electronic Card Transactions Statistics.  All retail sectors posted increases.
This follows a 0.5% increase in May and a 0.9% decrease in April.  Actual card spending in June 2018 was 4.4% higher than in June 2017.

AIMI Maize Survey

2018 was a good season for maize growers, according to the Arable Industry Marketing Initiative’s Survey of Maize Areas and Volumes. 
Yields of maize grain (12.8 tonnes per hectare) and maize silage (20.6 tonnes dry matter per hectare) for the 2018 NZ harvest were up on last season (at 10.0 tonnes per hectare and 18.5 tonnes dry matter per hectare respectively). This reflected a good to excellent season and harvest for most growers.
Intentions for next season indicate similar sowing of maize grain and a slight increase in sowing for maize silage.

Thanks - Farm Confidence Survey

Federated Farmers’ six-monthly Farm Confidence Survey has closed and we thank the more than 1,100 farmers who responded.  Research First is now analysing the results and we expect to release them later in July – along with the winner of the Air NZ Mystery Break!

NIWA Soil Moisture Data
NIWA’s latest soil moisture maps (as at 9am Thursday 12 July) continue to show most of the entire country either around average or wetter than usual at this time of year. 

Exchange Rates

Source: Reserve Bank of NZ

Wholesale Interest Rates

Source: Reserve Bank of NZ