Moderation continues in June
Grocery supplier cost increases are slowing, with the Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI) showing a 2.7% annual increase in June 2024.
“The slower moderation in grocery supplier costs seen in May has continued in June,” said Brad Olsen (pictured above), Infometrics CEO and principal economist.
Grocery cost increase trends
Around 2,000 items saw cost increases in June 2024, up 19% from June 2021.
“The number of cost increases was smaller in June than in most months of 2022-2024,” Olsen said.
However, 38% of cost changes were decreases, compared to 12% in June 2021.
Departmental costs
All departments saw higher costs compared to June 2023. Produce cost increases of 1.2% were slightly faster than in May, driven by fruits like tomatoes.
Cost pressures for items like cooking oils, chocolate, and coffee also kept general grocery costs high.
“Reduced import costs, softer fuel prices, and lower global food prices are all encouraging signs of continued moderation in cost pressures,” Olsen said.
Key insights from the GSCI
The GSCI measures changes in the list cost of grocery goods charged by suppliers to Foodstuffs North Island and South Island cooperatives, using data from more than 60,000 products across 500+ stores. Supplier costs represent two-thirds of supermarket prices, tracking the monthly cost for supermarkets to stock shelves.
Continued moderation expected
Despite higher global shipping prices, the outlook remains positive with reduced import costs and lower global food prices contributing to the moderation of cost pressures.
“Costs in June 2024 remained higher for all departments compared to June 2023,” Olsen said, highlighting a general trend towards slower increases.
Read the Infometrics report here. To compare with the previous results, click here.
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