The pace of supplier cost increases to Foodstuffs supermarkets in July was slower than the prior month.
The Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI) showed an average 1.9 percent increase in what suppliers charged in July 2026, compared with a year earlier.
“July’s result was the slowest annual increase since February 2025, driven by a number of cost decreases as some fuel adjustment factors reversed out, and as product cost increases haven’t been as intense as first feared when conflict in the Middle East sent various input costs soaring,” said Infometrics Principal Economist Brad Olsen.
“Although costs for some items have eased back slightly, increases continue across some household staples including meats, some produce, and recently some non-food grocery items.”
Supplier costs rose across all departments in July compared with the previous year. Butchery costs rose further in July, led by increases in beef, lamb, and pork, while produce costs rose, led by onions, cucumbers, and some fruits.
Grocery department items including laundry products, soaps and deodorants, and some ready-to-eat meals rose in cost too. There were also some products that saw fuel adjustment factor increases reversed out, including fresh produce and pantry staples like tomato sauce.
Month on month, just over 3,600 products increased in cost from June to July, a more usual number of monthly cost increases after the surge in June. Monthly cost increases averaged nearly 3,300 over the last year.
“There continues to be a large number of grocery department cost increases, although these are of more limited magnitude. Removals of some fuel adjustment factors in July also meant that there were more cost reductions than usual, with more likely in August depending on realised fuel prices.”
Olsen added that caution remains due to overarching input cost pressures, given that freight costs have spiked in recent months and uncertainty over the path of fuel prices.
“But for now, business expectations remain for lower and less intense, but still broad, cost increases.”
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