Statistics New Zealand has revealed in the February Food Price Index report that food prices have increased 12 percent, the highest annual increase since September 1989.
The average cost increase between suppliers to supermarkets, Foodstuffs cooperatives in particular, measured at 10.8 percent. However, the retail price increase was 10.4 percent on the same products.
Therefore the cooperatives held prices in stores at 0.4 percent less than inflation between the enterprise and suppliers and 1.6 percent less than the 12 percent annual increase in February.
Managing Director of Foodstuffs, Chris Quin, described the price increase as the opposite of what the enterprise had hoped. After many months of inflation that have added great financial strain for consumers and the enterprise, Quin stated there was hope to see inflation turn a corner.
“We had hoped to see signs by now that food price inflation was starting to turn the corner, but the Auckland floods and Cyclone Gabrielle have put more pressure on prices due to the severe impact on fruit and vegetable crops and the additional costs the sector is facing as a result of these events,” revealed Quin.
However, the impacts of the floods and Cyclone Gabrielle are expected to continue to affect inflation as the horticulture industry reels from the devastation caused to crops in Auckland and Northland regions.
More regarding the extreme weather events and their impact on the horticulture industry can be found here.
