Supplier costs for food supermarkets in New Zealand rose in May, marking an increase in the pace of growth after half a year of a slowdown, Infometrics said in a Monday report.
The Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index showed an average increase of 2.2% from a year earlier.
"May also saw a sharp rise in the number of products increasing in cost, as the early signs of higher input costs due to the Middle East conflict become more apparent," Brad Olsen, Infometrics Chief Executive and Principal Economist, said.
Supplier costs rose across all departments in May year-over-year, with notable large cost increases for frozen processed chicken, butter, and milk. Fruit juice, potato chips, coffee, lettuce, and tomatoes in the grocery and produce departments also saw notable cost increases.
"Only a small number of increases were directly attributed to fuel adjustment factors, with a larger number expected to be recorded in June," he added.
Over 3,900 products increased in cost from April month over month, with the 12-month average rising back over 3,000 per month.
"The number of increasing costs in May was the highest monthly total in a year, reflecting the first increases due to the Middle East conflict flowing through supply chains. The grocery and seafood departments saw the largest number of cost changes compared to the number of changes seen in recent months," Olsen said.