Source: www.stuff.co.nz

A 1 percent rise in grocery food prices in April is being seen as an ominous portent of inflation to come.

Figures from Statistics New Zealand (SNZ) today show that overall food prices lifted just 0.1 percent last month, although for the year to April they were up 6.1 percent, the fastest annual rise since July 2009.

But ASB economist Christina Leung said the subdued food prices in April were largely due to a 3.3 percent fall in fruit and vegetable prices, which were typically weak in April.

In contrast, the rise in grocery prices probably reflected a surge in international soft commodity prices in recent months, which were flowing through to higher prices for bread, pasts, some dairy products and cooking oil, she said

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