In July 2024, the cost of goods that suppliers charged to Foodstuffs supermarkets in New Zealand went up by an average of 2.4% compared to the same time last year.

This increase was the slowest since November 2021, but it was still higher than the average annual increase of 1.7% seen from 2019 to 2021, according to Brad Olsen, Chief Executive and Principal Economist at Infometrics.

The Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI) tracks the prices that suppliers charge for grocery goods.

It uses data from over 60,000 products bought by more than 500 Foodstuffs stores across the country, making it the most comprehensive dataset of its kind in New Zealand.

The Index is updated every month to reflect the cost changes suppliers pass on to supermarkets, which in turn affects the prices customers see on shelves.

In July 2024, over 3,700 items saw a price increase compared to the previous month.

This number was more than double what it was in July 2021 and was the highest in six months. This suggests that suppliers are still frequently adjusting prices, particularly for produce, but also for liquor, chilled foods, and other grocery items.

All departments saw higher costs in July 2024 compared to the previous year. Seafood, chilled foods, and butchery items experienced faster price increases, with dairy products like cheese and butter becoming more expensive due to rising global commodity prices.

Red meat prices also went up, contributing to higher costs in the butchery department.

Seasonal changes led to price hikes for tomatoes and other out-of-season vegetables, while chocolate and cooking oil prices remained high.

Olsen noted that the costs for producers and suppliers are still elevated, with some areas, like energy costs, seeing significant increases.

These higher input costs may continue to pressure suppliers, leading to more price adjustments in the future.