According to figures released by Stats NZ, food prices in New Zealand have reached a new high, with a 12.1 percent increase reported in March 2023 compared to the previous year. The most significant contributor to this increase was grocery food.
Consumer prices manager James Mitchell noted that increasing prices for barn or cage-raised eggs, potato chips, and 6-pack yoghurt were the biggest drivers within the grocery food category. These figures indicate the significant impact rising food prices can have on households nationwide.
The report also highlighted the significant increases across all the broad food categories measured by Stats NZ. Fruit and vegetable prices increased by 22 percent, restaurant meals and ready-to-eat food prices increased by 8.7 percent, meat, poultry, and fish prices increased by 7.8 percent, and non-alcoholic beverage prices increased by 8.2 percent.
While many factors have contributed to these price increases, including international supply chain disruptions and changing consumer demand patterns, the impact is felt most acutely by those already struggling to make ends meet. For these households, higher food prices can lead to difficult choices between buying groceries and paying for other essentials.
As the largest contributor to the increase in food prices, the grocery food sector has a significant role in addressing this issue. Businesses in this sector must work to identify opportunities for efficiencies in their supply chains and explore new approaches to production and distribution that can help bring prices down.
While there are no easy solutions to this complex issue, it is clear that action is needed to ensure that food remains affordable for all New Zealanders. By working together, businesses, government and consumers can help to create a more sustainable and equitable food system that benefits everyone.
