Food prices were up 0.5 percent in the March 2009 month, an 8.6 percent increase on the year to March.

As we noted in our last comment on food prices, it is important to note that annual increases will appear high because of the spike in the May to August 08 period, where prices increased by 5.6 percent in a four month period. This can be clearly seen on the graph below. The spike was caused largely by a rapid increase in fruit and vegetable prices, which rose by 22 percent over that four month period. Since then, fruit and vegetable prices, which account for 20 percent of the FPI, have fallen quite rapidly.

Also interesting to note, the steam appears to have come off the grocery food subgroup, which was down 0.2 percent on the March 2009 month. Grocery food accounts for 43 percent of the FPI and has been the other major contributor to increasing prices.

However, meat, poultry and fish prices continue to rise, up a further 1.4 percent in the March 2009 month and 12.6 percent on the March 2009 year.

Looking at the last six months of the FPI, it has increased by only 1.8 percent, compared to 6.5 percent in the previous six months. This suggests that food prices are definitely easing and should continue to do so over the next few months.

However, individual items tend to fluctuate and that is what we like to discuss in regards to food prices.

Chicken, lamb and beef were all more expensive, but 3.2 percent, 5.9 percent and 1.5 percent respectively. In fact, beef is up 15.1 percent on the year, while fresh chicken is up 11.7 percent. The price of bacon is up a whopping 22 percent from a year earlier.

Lettuce prices were up 55.5 percent in March on a month earlier and strawberries (at the end of their season) were up 61.5 percent). Meanwhile apples were 16.9 percent cheaper and potatoes, that staple, was down 9.4 percent. On the year bananas are 17.5 percent pricier than a year earlier and kiwifruit prices are up 26.6 percent.

Grocery food prices on the March month are mainly down, with chocolate bars and blocks down 5.7 percent, cheese down 6.9 percent and yoghurt down 5.1 percent. On the year, bread is now 13.4 percent costlier, while cheese is 10.7 percent cheaper.

So what can we say? Packing the school lunches is now a bit easier on the wallet, as long as you stay away from including bananas, kiwifruit or bacon butties.