The November Food Price Index from Stats NZ highlighted an increase of 10.7, Foodstuffs NZ Managing Director Chris Quin has said that while he hoped inflation would decline, the challenges it provides look to remain entrenched in 2023.
“The headwinds that have seen New Zealanders face the fastest rate of inflation in decades this year are still present.”
“The cost of getting food to market is still being pushed up by the escalating overall cost of doing business and ongoing supply chain pressures. It’s still much more expensive to run a business and to get goods when you need them than it was pre-pandemic.
“Food growers, makers and retailers have been in the economic equivalent of the Roaring Forties this year, with all of the major drivers of inflation both globally and domestically being felt from paddock to plate.
“The fight against inflation to help ease pressure on household budgets will remain our number one focus over Christmas and into 2023.
“We’re into our busiest trading period, and our teams are going the extra mile to make sure customers can get what they need on the shelf over the busy summer season when New Zealanders need a good break.
“Overall, rising inflation has dampened consumer sentiment. This is reflected in our Customer Insights Survey which showed that while half of our customers say they will spend the same amount at Christmas, one in three are planning to spend less.
“In the face of rising costs, customers will continue to re-evaluate where they shop and what they buy. Value will remain king for them, and retailers will have to compete hard.
“While signs global commodity prices are coming off their peak is good news, we also have to be realistic about the fact that our isolation as a small market at the bottom of the world means it will take longer for those changes to flow through to us, and domestic pressures still remain.
“We'll continue working hard to ensure we’re keeping the shelves stocked and delivering value for customers right through the busy summer season.”
