According to the Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI), October saw a ten percent rise in grocery supplier costs. October also saw the most significant number of items to have a re-cost increase since recording began in 2018.
“Just over 9,000 items were re-costed higher in October 2022, nearly five times higher than in the same month in 2019 (pre-pandemic). The continued rapid rise in supplier costs to supermarkets reinforces the inflationary pressures observed across the economy, and the Index shows no abatement or change in direction yet,” said Brad Olsen, Infometrics Principal Economist.
Supplier costs rose again through all departments - produce, butchery and seafood supplies were up over ten percent. Frozen food trailed with 9.8 percent.
“Despite large annual increases in the more volatile fresh produce and proteins departments, the continued high supplier cost increases for more general grocery and non-food goods emphasises the broad-based nature of cost pressures.”
Fuel prices, international food prices, employment and wage statistics, and high inflation all suggest cost pressures will remain. The lower New Zealand dollar will also keep imported inflation higher than otherwise.
