According to the co-ops’ latest food price inflation data, the prices of summer favourites at Foodstuffs supermarkets fell significantly year over year in November.
The two Foodstuffs co-ops monitor food price inflation (FPI) across their stores nationwide using a basket comparable to Stats NZ’s FPI basket.
In the latest figures for November, both Foodstuffs’ and Stats’ baskets were up 1.3 percent year on year for the ninth consecutive month; both have been under 1.5 percent.
Foodstuffs NZ Managing Director Chris Quin said those results underscored the view that 2024 was the year food price inflation was finally brought back down to an acceptable level.
“When you consider that Stats’ national average was six percent a year ago and almost 11 percent two years ago, it’s great to end this year on a positive note,” said Quin.
“Alongside that, we can see signs of consumer confidence returning, with more people telling our quarterly survey that they expect their finances to be better next year, and fewer saying they’re cutting back on non-essentials.”
While orange kūmara saw the biggest year-on-year decrease in November, at 58 percent, many barbecue favourites were also down in price, just in time for summer. These included precooked sausages, which were ten percent cheaper, pork loin chops, down eight percent, and brown onions, down 50 percent.
Carrots and cabbage for coleslaw were 23 percent and 11 percent cheaper than last November, respectively, mandarins by 16 percent and strawberries by seven percent.
Foodstuffs’ produce experts said after months of good spring weather, there were bumper supplies of many fruits and vegetables heading into Christmas.
Foodstuffs North Island’s Brigit Corson said that growing conditions have been excellent, so there should be lots of berries and summer fruit on the shelves for the pavlova or fruit salad.
At the same time, Foodstuffs South Island’s Justin Dykhoff said that apricots, cherries, and blueberries were abundant during Christmas week. Sweetcorn was also plentiful, promising a great season.
Conversely, Christmas essential chocolate continued to be impacted by adverse global conditions, with cocoa almost double what it was last November and triple what it was two years ago.
Foodstuffs freight experts added that international shipping was still under significant pressure due to a combination of the Red Sea conflict, congestion at key ports like Singapore, and low water levels in the Panama Canal, resulting in unreliable lead times and rising costs.
“We’ve been able to avoid those costs due to the volumes we import and rates we’ve secured. Our overall supply levels are strong, meaning stores are well-stocked for summer.”
However, supplier costs in Foodstuffs’ FPI basket accelerated, rising 3.4 percent annually. These costs account for around two-thirds of the retail shelf price.
Quin said that while they had observed a slight increase in inflation in Europe and the US in the latest month, food price inflation in Australia was still over three percent, and New Zealand was in comparatively good shape.
“That’s thanks to a combination of factors, but key among them is the united and determined effort by our co-ops’ 500-plus members to help get food price inflation under control over the past three years by buying well and running our co-ops and stores as efficiently as possible.”
He added that New Zealand will turn the page on inflation in 2025 and start looking at other aspects of the economy that require an equivalent laser focus to boost the nation’s prosperity.
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