Grocery supplier cost increases lowered further in November, with an annual increase of less than 5% per year, according to the latest data from Infometrics.
Each month, the Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI) tracks the change in the list cost of 60,000 products charged by suppliers to Foodstuffs' North Island and South Island co-operatives.
The GSCI last month showed a 4.8% increase in what suppliers charged supermarkets for goods compared to last year – down from 5.4% per annum in October 2023.
"November’s result is the first sub-5% annual increase since March 2022," Infometrics chief executive and principal economist Brad Olsen said today in a media release.
"Cost increases continue to be sustained at a higher pace than in 2018-19, but not as fast as throughout 2022, when inflationary pressures ran rampant."
Olsen said "just over 4800 items" saw a cost increase last month – "more than double" the roughly 2000 products which rose in cost in November 2020.
Of that number, over 63% recorded a 0-20% cost increase – up from 58% of items in November 2020.
A further 8.8% of products rose in cost by more than 20% last month, compared to 8.3% of items at the same time in 2020.
Meanwhile, just 28% of items saw prices fall in November 2023, compared to 34% in 2020.
"All departments recorded higher supplier costs in November 2023 than a year ago, but the pace of these cost increases continues to slow across almost every department," Olsen said.
Seafood supplier costs saw the greatest increase last month, followed by groceries. The costs for fresh vegetable produce also remained lower, however some fruit costs rose.
"These high monthly gains kept grocery in the top spot for annual increases, with several breakfast foods and cereals rising in cost during November."
Olsen said while grocery supplier costs have increased, the rate of the increase has slowed somewhat.
"Encouragingly, various input indicators are still pointing towards a continued input cost moderation," he said.
"Fuel prices are lower, limiting upwards pressure on input costs resulting from higher transport costs. The exchange rate has risen recently, making the cost of importing goods relatively cheaper, and other input cost indicators are showing similar slower cost rises."
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