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Grocery prices still rising but not as fast, index shows

August 6, 2023
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NELSON, NEW ZEALAND, JULY 19, 2018: Unidentified customers examine sale goods in a supermarket.

The GSCI, commissioned by Foodstuffs, data across more than 60,000 products the company buys. (file image)
Photo: 123rf.com

Grocery prices are still rising but not as fast as they were, according to an index measuring costs of supplying supermarkets.

The latest Infometrics-Foodstuffs Grocery Supplier Cost Index (GSCI) showed the prices suppliers charged supermarkets for goods rose by 7.5 percent in the year to July 2023.

But that was a drop compared with the double-digit increases seen at the start of this year.

Infometrics principal economist Brad Olsen said the statistics showed there was still a lot of inflationary pressures affecting the supply chain, and those costs were being passed on to consumers.

Although this was the fifth month in a row that annual cost increases had slowed, Olsen said consumers would not see lower food bills any time soon.

“Although we’re starting to see slightly better numbers at the moment, those aren’t showing that food prices are about to go down.

“The hope looking through these figures seems to be that food prices won’t increase at the same fast pace as they previously had.”

The index showed more than 6500 items increased in cost in July 2023.

Olsen said previous analysis showed supplier costs were the major component of supermarket prices, representing two-thirds of the on-shelf price.

The GSCI is commissioned by Foodstuffs, which owns the New World, Pak’NSave, and Four Square supermarket chains.

It uses Foodstuffs NZ data across more than 60,000 products the company buys.

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