Supplier costs for food supermarkets in New Zealand rose 2% on average in April from a year earlier, marking a continued slowdown in the pace of increases from recent months, Infometrics said in a Monday report.
However, Infometrics Chief Executive and Principal Economist Brad Olsen cautioned that the slower readings "still largely pre-date rising costs stemming from conflict in the Middle East, with only some limited increases for produce showing through so far."
The economic consultancy firm expects additional impact from the conflict to become evident in the Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index over the next few months.
"Fuel costs are set to influence costs first, followed by wider pressures from plastics and packaging costs, with further operating cost rises, like for fertilizer, showing through over time," Olsen said.
Supplier costs ticked higher across all departments in April compared with the previous year, including a continued rise in protein costs and a nearly 5% increase in average seafood supplier costs, alongside notable increases for broccoli, kumara, and capsicums, according to the report.