The Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index indicates there was an average 2.2% increase in what suppliers charged grocers in July over the year earlier.
“The pace of supplier cost increases has become slightly faster in the last few months, reflecting a number of key products seeing larger cost increases due to higher global food prices, like for dairy, meat and chocolate products,” Infometrics chief executive Brad Olsen said.
Other notable cost increases included toilet paper, and paper towel costs, while cauliflower, broccoli and capsicum costs fell.
More than 3000 products increased in cost in July over June.
“This monthly total is down on the sharply higher June month result, but is larger than expected, given timing differences meant we expected a more subdued number of changes in July,” Olsen said.
“The number of chilled food item cost increases was the lowest in about a year, after a few months of elevated cost increases, but butchery cost increases were notably higher in July.”
Butchery cost rose 2.1% on the year earlier, following a 1.2% increase in June.
“Beef and lamb prices rose across the board, particularly for steak, mince and roasts, as global meat prices raise domestic meat slaughter prices,” Olsen said, adding fish fillet costs were also higher.
“Continue strong export demand for protein is still pushing up prices, exacerbated by lower supply domestically at this time of the year.”
However, he said the cost increases were concentrated to a number of key products and not widespread.
“These conditions are quite different from a few years ago when there were widespread, persistent and large cost increases across a wide variety of products.
“Lower input costs in some areas are supporting less intense cost gains, for example for produce, but higher international costs continue to be a dominating influence for general cost trends,” he said.
