Supermarket supply costs are up 6.1% from a year ago, according to new numbers released today.
The latest Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI) shows all departments, except one, once again saw increased costs but "at a less intense pace than" previously.
The GSCI is funded and commissioned by Foodstuffs — the cooperative that operates New World, Pak'n Save and Four Square franchise stores.
Infometrics principal economist Brad Olsen said: "Costs have continued to increase, but at a less intense pace than during 2022 and early 2023, with September's monthly increase closer to the monthly increases seen in 2019.
"However, underlying cost pressures are still running at nearly 4% per annum."
Olsen said produce costs fell, while other costs rose in the metric. The index tracks data across over 60,000 products Foodstuffs buys to put on shelves.
"Grocery items had a mixed bag, with higher sugar, tinned tuna, and chip costs, but lower cooking oil costs. Produce costs fell in September from August, with the annual increase in produce costs now having slowed to 6.3%," the economist said.
"Lower salad items costs led this trend, although fruit costs rose."
The Infometrics economist said lower monthly costs for some produce "likely reflects both the usual seasonality and the effects of Cyclone Gabrielle ebbing away alongside lower general cost pressures than a year ago".
"Nearly 4800 items increased in cost in the September month, still more than double the 1749 items that rose in cost in September 2020," he said.
"A larger proportion of items increased by 0-20% in September 2023 — around 65% compared to around 57% in September 2020.
"However, the proportion of items increasing by a large degree (20-80% in a month) was similar between 2023 (8.0%) and 2020 (8.8%)."
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