Supermarket supply costs are up 10% from a year ago, according to new numbers released today.
The Infometrics-Foodstuffs Grocery Supplier Cost Index (GSCI) shows a double-digit increase in what suppliers are charging supermarkets for their goods.
According to Infometrics chief executive and principal economist Brad Olsen, the increase comes as suppliers are still facing high input cost pressures.
“Although there are some signs emerging of less intense cost increases filtering through the system,” he said.
“Global conditions are supporting a transition to less acceleration in food cost increases. However, domestic-based inflation remains high and creates uncertainty over future cost pressures.”
The GSCI measures the change in grocery costs from suppliers to cooperatives owned by Foodstuffs across the country.
Utilising over 60,000 products to conduct the report, Infometrics found that all departments saw increased costs.
General merchandise, grocery items, and produce saw the largest increases in April, with annual growth in production costs still near 20%.
Olsen said the increase was largely driven by higher prices for eggs, cooking oils, sauces and batteries.
“There are also some further increases to produce prices that appear to relate to Cyclone Gabrielle, but some fruit and vegetable prices have also moderated slightly,” he said.
He said some of the drivers behind the high input costs are slowing, however.
“Fuel prices have fallen, but transport costs are set to rise later in 2023 as the government ends the current subsidies on fuel taxes and road user charges.
Fertiliser prices also dropped by 64% over the last 12 months.
“However, global food prices remain stubbornly high, and supply chain challenges continue.”
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