Latest / Best of Business / Liam Dann: NZ Herald business editor at large on chocolate and olive oil pushing up food price inflation for August

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Liam Dann: NZ Herald business editor at large on chocolate and olive oil pushing up food price inflation for August · Best of Business

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  Speaker 2: Chocolate, olive oil, butter and takeaways are the ones that
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  Speaker 2: pushed up food price inflation in August. Overall food prices
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  Speaker 2: increased zero point four percent in the year to August
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  Speaker 2: thirty one. That's not bad a but look at this. Okay,
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  Speaker 2: let this be the lesson to you that you should
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  Speaker 2: be eating the fruit and vegies and not the chocolate,
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  Speaker 2: because those prices were down twelve percent. Liam dan is
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  Speaker 2: The Herald's Business editor at large.
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  Speaker 3: Alam get a either.
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  Speaker 2: Why is chocolate up twenty percent on last year? That's
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  Speaker 2: a lot.
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  Speaker 3: Yeah, chocolate and olive oil both at the at the
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  Speaker 3: actual growing end. You know, Africa for chocolate and Southern
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  Speaker 3: Mediterranean area for olive oil, both have had terribly disruptive
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  Speaker 3: growing seasons and that's push the whole wholesale price up.
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  Speaker 3: And well, you know, olive oil and particularly is sort
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  Speaker 3: of like double what it used to be. So yeah,
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  Speaker 3: that's a shame. But hey, it's never been a better
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  Speaker 3: time to get a cage of potatoes, according to statsin
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  Speaker 3: z So there you go. I just cook it and
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  Speaker 3: some other oil and some fry you chips and something else.
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  Speaker 2: Yeah, what about butter? No, that's expensive as well.
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  Speaker 3: Yeah, that's that was another one.
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  Speaker 2: Yeah, okay, so no potatoes and butter, so boil them.
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  Speaker 2: What what else apart from potatoes has come down in price.
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  Speaker 3: Well, the good news really when you when you sort
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  Speaker 3: of get below the sort of headline items that we
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  Speaker 3: like to put in headlines is that, you know, petrol,
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  Speaker 3: transport costs, even even rental starting to ease or stabilize.
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  Speaker 3: So there was enough there that the economists are looking
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  Speaker 3: at that and going Okay, that's that's pretty good. That
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  Speaker 3: that's disinflation still. It's the sort of last vestiges inflation
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  Speaker 3: coming out and and the and they're confident now that
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  Speaker 3: we'll see annual consumer price inex inflation four below two
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  Speaker 3: point fall to about two point five something like that,
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  Speaker 3: so below three, which is where the Reserve Bank has
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  Speaker 3: to have it and sort of bet the house on
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  Speaker 3: it really by cutting rates already. So and this is
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  Speaker 3: the last lot of you know, partial inflation data we
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  Speaker 3: get before that, and of course we get another Reserve
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  Speaker 3: Bank call before we see the full consumer pricing ex inflation,
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  Speaker 3: so odds will get another cut before then, so they'd
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  Speaker 3: be looking pretty silly if it didn't didn't come down.
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  Speaker 3: But it is looking pretty good from here.
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  Speaker 2: GDP data is out this week or do you want
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  Speaker 2: to take a pun on what we're going to see?
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  Speaker 3: Yeah, well it's going to be an economic contraction of
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  Speaker 3: some sort. I mean, the reserve band could said zero
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  Speaker 3: point five. I've seen economists picking from zero point one,
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  Speaker 3: zero point four something like that. So that's we bounced
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  Speaker 3: out of recession in the March quarter, So contracting again
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  Speaker 3: means we're not quite in another recession. But I've seen
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  Speaker 3: it described i think by Michael Gordon at WESTPEC as
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  Speaker 3: a rolling mall of recession. It's really just bouncing around
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  Speaker 3: in and out of recession. So yeah, nothing good in
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  Speaker 3: that second quarter, but it is a bit historic and
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  Speaker 3: it might be the worst quarter before the interest rates
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  Speaker 3: start to look a bit better and we all stay
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  Speaker 3: to feel a bit happier.
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  Speaker 2: Liam, Thank you very much, really appreciate it, mate, Liam Dan,
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  Speaker 2: the Herald's Business editor.
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