The continuing rise in food prices remains a concern, though there are indications the rate of increase is slowing, said the New Zealand Food and Grocery Council (NZFGC).
Chief Executive Raewyn Bleakley responded to Interest.co.nz after Statistics New Zealand reported that grocery food prices increased by 12.7 percent in May compared to the same month in 2022. Fruit and vegetable prices increased by 18.4 percent, and meat, poultry, and fish prices by 11.7 percent.
“The cost of living crisis makes a competitive environment for suppliers even tighter, and suppliers are absorbing costs to stay affordable to consumers,” Bleakley said.
“Fresh produce remains a concern, though mainly due to the slow-growing season coming hard on the heels of the bad weather events and a very wet autumn.”
Bleakley continued that research by Sense Partners, using Statistics New Zealand data, showed price inflation was not caused by inflated profits but rather by input prices, such as ingredients, fuel, and the cost of doing business. She said it was clear that once those factors were controlled, and some of it was imported, New Zealand would likely see a general easing in food price rises in line with the overall inflation rate.
