Supermarket supply costs are up 8.3% from a year ago, according to new numbers released today.
The latest Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI) shows all departments once again saw increased costs but "at a less intense pace than previously".
"Bakery costs rose the most month-on-month, with larger rises in chilled foods and grocery too," Infometrics chief executive and principal economist Brad Olsen said.
"The chilled food increases were driven by higher costs for dairy and chilled meats, and the rise in grocery costs was driven by larger cost increases for grains, chips, and noodles items."
Olsen said the 8.3% rise was an improvement on May's figures, which saw an 8.8% increase.
The GSCI measures the change in grocery costs from suppliers to cooperatives owned by Foodstuffs across the country. It utilises more than 60,000 products to give a real-time view on supplier cost changes.
"Monthly increases in the last three months have been less intense than the considerably larger rises in late 2022, but they are still around triple the monthly rate seen pre-pandemic," Olsen said.
But he stressed that "actual costs aren't falling overall — far from it — but cost increases aren't as faced-paced as they have been before, a sign of easing pressure on costs generally".
"Over 4000 items increased in cost in June 2023, about 2½ times the number of items back in June 2020.
"The latest result is still one of the top 20 months for the highest number of items increasing in cost."
Meanwhile, world food prices fell a further 3.5% in June, with a total fall of 5.6% over 2023 so far.
SHARE ME