Grocery prices largest contributor in annual increases

Te Whanganui-a-Tara - Food prices were 12.1 percent higher in March 2023 than they were in the year to March 2022, according to figures released by Stats NZ today.

Grocery food was the largest contributor to this movement.

“Increasing prices for barn or cage-raised eggs, potato chips, and 6-pack yoghurt were the largest drivers within grocery food,” Stats NZ consumer prices manager James Mitchell says.

In March 2023, the annual increase was due to rises across all the broad food categories Stats NZ measures. Compared with March 2022:

• grocery food prices increased by 14 percent

• fruit and vegetables prices increased by 22 percent

• restaurant meals and ready-to-eat food prices increased by 8.7 percent

• meat, poultry and fish prices increased by 7.8 percent

• non-alcoholic beverage prices increased by 8.2 percent.

The second-largest contributor to the annual movement was fruit and vegetables. The increase was driven by tomatoes, potatoes, and avocados.

Monthly food prices rose 0.8 percent in March 2023 compared with February 2023. After adjusting for seasonal effects, they were up 0.5 percent.

The 2.3 percent increase in grocery food was the largest contributor to the monthly movement. Within this group, the items having the greatest impact were barn or cage-raised eggs, six-pack yoghurt and boxed chocolates.

These price rises were partly offset by a 1.0 percent fall in meat, poultry, and fish.

The global cost-of-living crisis has left many countries facing double- and even triple-digit year-on-year food price inflation.

The World Bank has announced a $30 billion support package aimed at boosting food and nutrition security, reducing risks and strengthening food systems.

The World Economic Forum says the cost-of-living and energy crises could ease by the end of 2023.

The global food crisis has been exacerbated by the imposition of food trade restrictions imposed following Russia’s invasion of Ukraine, as countries attempted to increase domestic food supplies and curb inflation.

As of December 2022, 19 countries have imposed food-export bans and eight have put in place export restrictions, according to the World Bank.