The fall was mainly influenced by lower fruit and vegetable prices (down 3.7% after seasonal adjustment). Seasonally adjusted food prices fell 0.5% in May 2016.
"Tomatoes and potatoes influenced the drop in vege prices," consumer prices manager Matt Haigh says. "The average price for a kilo of tomatoes fell to $6 in May compared with $6.70 in April."
Meat, poultry and fish prices rose 0.2%, with higher prices for lamb (up 5%). The average price for a kilo of lamb chops was $14.28, up 8% from April 2016.