Stats NZ has reported an annual food price inflation (FPI) rate of 4.6 percent for January, while Foodstuffs recorded an average year-on-year retail price increase of four percent across its comparable FPI basket.
Foodstuffs NZ Managing Director Chris Quin said Foodstuffs’ comparable basket has now tracked below Stats NZ’s headline food price inflation rate for 10 of the past 12 months.
While meat and kiwifruit prices remained high due to supply constraints and global demand, Quin said a real bright spot of this summer is the bumper apple crop that’s being picked right now.
“Our growers in Hawke’s Bay and Nelson tell us this season is shaping up as one of the best in the past 30 years, with excellent quality apples and strong volumes coming through,” he said.
“Early season varieties are great buying, and we’re focused on using the whole crop; small fruit is just what you need for back-to-school lunchboxes. Royal Gala is still New Zealand’s most popular, followed by the Ambrosia variety, with good old Granny Smith in third place out of a range of more than 30 apple varieties stocked over the season.”
January’s year-on-year retail price movements were driven largely by fresh produce, including kūmara (-15.4 percent), lettuce (-15.0 percent) and broccoli (-13.2 percent), while other everyday items also fell, such as olive oil (-18.3 percent) and eggs (-9.8 percent).
Quin added that the seasonal pricing trend in fresh produce appears to be continuing into February, with apples now joining the list of great-value items as volumes grow. Long-term supplier relationships are key to supply, choice, and quality.
“We’ve partnered with New Zealand growers for decades, and Yummy in Hawke’s Bay is an awesome example of that. By backing each other and working closely together, we’ve been able to give growers certainty and our customers excellent quality. These connections also enable programmes that make a real difference in schools and local communities.”
Quin said this apple season is looking like a return to better times after Cyclone Gabrielle devastated the key East Coast growing regions in 2023. However, recent bad weather could affect the availability and pricing of other crops over the coming weeks.
Strong crops make a real difference for growers’ livelihoods, along with the many jobs and communities that rely on them.
Looking across the FPI basket, protein and a handful of seasonal items continue to face upward pressure.
The steepest year-on-year price increases in January were white bread (+62 percent), kiwifruit (+45.6 percent), lamb legs (+38.5 percent), cabbage (+33.0 percent), tomatoes (+29.3 percent), meat pies (+27.3 percent), beef mince (+24.5 percent) and porterhouse/sirloin steak (+22.8 percent).
“If you look across our core range of sliced breads, the year-on-year movement is around 5.7 percent. Pams remain one of the most affordable options in the category and continue to be a great choice for customers looking for value.”
The spike in kiwifruit prices reflects New Zealand’s strong export success and the need to fill supply gaps with imported fruit ahead of the local growing season, which starts in autumn.
Quin also mentioned that beef and lamb prices are showing signs of stabilising, despite the restricted supply of New Zealand products.
“As New Zealand-owned co-ops, our focus is simple – stock high-quality products that give customers choice and real value. That means working with local growers and suppliers wherever we can, and sourcing alternatives when it helps keep prices down.”
