The annual increase in food prices eased to 9.9 percent following a 0.3 percent fall in food prices in the October 2008 month.  This is still well above the 3.6 percent growth in the October 2007 year, but down on the 10.3 percent and 10.8 percent annual increases over the previous two months.

On the month prices were down for fruit and vegetables (down 6%) and non-alcoholic beverages (down 0.4%) and up for meat, poultry and fish (2.4%) and grocery food (up 0.6%).  Items pushing prices down in October were lettuces (down 50.7%) and tomatoes (down 24.9%).  Pushing prices up in October were potatoes (up 20.6%), beef, and prepared meats and smallgoods.

On the year, all subgroups saw increases in prices.  The greatest increases were from grocery food (up 11.9%), meat, poultry and fish (up 11.0%) and fruit and vegetables (up 12.5%).  Items pushinhg prices up were ready to eat food, bread, beef, cheese and cakes and biscuits.

On the other hand, the humble tomato is close to 25 percent cheaper than a year ago.

Looking at the graph, fruit and vegetable prices have shot up recently (due to the inclement weather) but are working their way back down.  Meat, poultry and fish, on the other hand, have been working their way up over the last few months.  Grocery food, which makes up the largest component of the CPI, is largely driving the CPI.  Looking forward, good weather, lower fuel prices, and the current economic climate should see food prices continue to ease.

So, to summarise rising grocery prices will see the CPI continue to rise although at a slightly slower pace.  Shopping trolleys should include more veges, less protein, and leave out the 3kg bag of potatoes...until next month!