The New Zealand Food Price Index rebounded to 0.9% MoM in January, tipping into a six-month high but remains well below the previous peak of 1.6% in July of 2023.
Stats NZ noted that the key drivers of recent inflationary pressures were rent increases, following by food prices and tobacco products.
The greatest contributor to increasing food prices came from grocery food items, driven by chocolate, dairy, and egg prices. New Zealand food prices rose both MoM and on an annualized basis.
Market reaction
The NZD/USD is rising into 0.6060 after a sharp decline on Tuesday, and the pair is poised for a recovery rebound provided Kiwi bidders can keep the pair over the near-term low of 0.6050.
About New Zealand Food Price Index
The Food Price Index (FPI) released by the Statistics New Zealand measures price changes of food bought by households. New Zealand depends upon exporting agricultural goods and food products. Thus, high food prices relatively suggest an increase of trade interests. A high reading is seen as positive (or bullish) for the NZD, while a low reading is negative (or Bearish)
Source: https://www.fxstreet.com/news/new-zealand-food-price-index-climbs-09-in-january-versus-decembers-01-202402132142