Supermarket supply costs are up 8.8% from a year ago, according to new numbers released today.
The Infometrics-Foodstuffs Grocery Supplier Cost Index (GSCI) shows a comparatively smaller uptick in increases for what suppliers are charging supermarkets for their goods in May 2023.
From October 2022 to April 2023, these increased were 10% or greater.
Infometrics chief executive and principal economist Brad Olsen called the 8.8% rise an improvement on recent months, but notes that it does not signify food becoming cheaper at the till.
“Costs haven’t fallen, but they are rising at a slower pace than seen in some months of 2022. Importantly, the May 2023 monthly increase of 0.4% is still in the top quartile of monthly cost increases seen in the GSCI.”
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.
Olsen said nearly 5600 items increased in cost last month, about one eighth of them being hikes greater than 20% on May 2022.
“Frozen goods, produce, and grocery departments saw the largest monthly movements, with a variety of products seeing larger increases," he said.
"Frozen food price increases were across the board, with produce prices pushed up by avocados, cucumbers, and bananas, and grocery cost rises underpinned by pet food, energy drinks, and chocolate.”
Though the newest GSCI appears sunnier in contrast to May last year, Olsen advises that costs for wages, raw materials and other services were still pushing up prices, albeit at a less frantic pace.
"Looking forward, both global indicators and domestic data point towards further moderation in cost pressures over time," he said.
"However, costs are still rising more quickly than normal, even if the rate of growth is less acute than it was last year.”
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