Cheaper fruit, veges drive food price drop

Annual food prices have fallen for the first time in nearly six years, suggesting a slowing of inflation pressures.

Stats NZ said prices fell 0.3 percent in the year ended June, driven by significantly cheaper fruit, vegetables, meat and poultry.

The falls offset rises in takeaways and restaurant meals, groceries, and soft drinks.

For the month of June, food prices increased 1 percent.

A range of other price reports for the month showed cheaper fuel, accommodation, and domestic air travel, while rents increased modestly.

The goods and services measured make up just under half of the consumer price index.