Grocery suppliers to supermarkets saw a cost increase in February. This increase has accelerated after a subdued summer compared to the typical moratorium on cost increases that usually preside over the summer period.
The Infometrics and Foodstuffs New Zealand Grocery Supplier Cost Index revealed a 10.4 percent rise in February, which has grown from the 10 percent annual rate in January. The index measures the changes in the cost of grocery goods charged by suppliers to Foodstuffs North Island and South Island cooperatives. Data utilised by informetrics, collated from Foodstuffs, to analyse these changes includes over 60,000 products purchased by the cooperatives to stock in store
As the largest dataset of its type, the index tracks the costs of supermarketing to buy goods bought by customers, with supermarket prices shown to be directly impacted and affected by the price at which suppliers charge them for their products.
“As expected, supplier costs have accelerated again after the holding pattern over the summer, as input costs across the supply chain continue to put pressure on producers,” said Infometrics Principal Economist and Chief Executive Brad Olsen.
Global food and domestic fuel prices remain relatively stable at elevated rates, with subsequent input costs, including packaging, continuing to rise.
“Domestic inflation pressures have not eased substantially yet, and weather-related disruptions will only reinforce some of the pressures already in the system, as supply is limited.”
Input costs are expected to continue to rise significantly, the data showing that pressure operational practises will make the services continue to increase in price, driving an increase of cost across the entire supply chain.
