Economists say falling food prices are a certain sign inflation's also going down

Annual food prices have decreased for the first time in six years - sliding 0.3 percent in the year ending June.

Fruit and vegetable prices fell more than 16 percent, after record-highs last year.

The Reserve Bank yesterday said it expects inflation to return within the target range this year.

ASB Senior Economist Mark Smith says this data could affect cuts to the Official Cash Rate.

He says the OCR could be cut sooner and more, as a result.