Summer favourites are among the foods that saw significant year-on-year price falls at Foodstuffs supermarkets in November, according to the co-ops’ latest food price inflation data.
The two Foodstuffs co-ops monitor food price inflation (FPI) across their 500+ stores nationwide using a basket that’s comparable with Stats NZ’s FPI basket.
In the latest figures for November, both Foodstuffs’ and Stats’ baskets were up 1.3% year on year – the ninth consecutive month both have been under 1.5%.
Foodstuffs NZ Managing Director Chris Quin says those results underscore the view that 2024 was the year food price inflation was finally brought back down to an acceptable level.
“When you consider that Stats’ national average was 6% a year ago, and almost 11% two years ago, it’s great to end this year on a positive note,” says Quin.
“Alongside that we can see signs of consumer confidence returning, with more people telling our quarterly survey that they expect their finances to be better next year, and fewer saying they’re cutting back on non-essentials.”
While orange kūmara saw the biggest year on year decrease in November, at 58%, many barbecue favourites were down in price too, just in time for summer, including precooked sausages, which were 10% cheaper, pork loin chops, down 8%, and brown onions, down 50%.
Carrots and cabbage for coleslaw were 23% and 11% cheaper than last November, respectively, mandarins by 16% and strawberries by 7%. Foodstuffs’ produce experts say after months of good spring weather there are bumper supplies of many fruits and vegetables heading into Christmas.
“Growing conditions have been excellent so there should be lots of berries and summer fruit on the shelves for the pavlova or fruit salad,” says Foodstuffs North Island’s Brigit Corson.
“Apricots, cherries and blueberries are abundant for Christmas week,” says Foodstuffs South Island’s Justin Dykhoff. “Sweetcorn is also in great supply and it promises to be a great season.”
Conversely, Christmas essential chocolate continues to be impacted by adverse global conditions, with cocoa almost double what it was last November, and triple what it was two years ago.
Foodstuffs freight experts say international shipping is still under significant pressure too, due to a combination of the Red Sea conflict, congestion at key ports like Singapore, and low water levels in the Panama Canal – all of which are resulting in unreliable lead times and rising costs.
“We’ve been able to avoid those costs due to the volumes we import and rates we’ve secured,” says Quin. “Our overall supply levels are strong, meaning stores are well-stocked for summer.”
Supplier costs in Foodstuffs’ FPI basket accelerated, though, rising 3.4% year on year – the highest rate since May – with supplier costs accounting for around two-thirds of retail shelf price.
“While we’ve observed a slight increase in inflation in Europe and the US in the latest month, and food price inflation in Australia is still over 3%, New Zealand is in comparatively good shape.
“That’s thanks to a combination of factors but key among them is the united and determined effort by our co-ops’ 500-plus members to help get food price inflation under control over the past three years, by buying well and running our co-ops and stores as efficiently as possible.
“Ideally, New Zealand will turn the page on inflation in 2025 and start looking at other aspects of our economy that require an equivalent laser-focus in order to boost our nation’s prosperity.”
FAST FACTS
• Stats NZ records 1.3% food price inflation (FPI) in November 2024, year on year
• Foodstuffs co-ops also see 1.3% rise in stores in their comparable FPI basket, YOY
• Foodstuffs supplier costs rise 3.4% for goods in FPI basket, the highest since May
• Summer favourites among foods seeing biggest price falls, but chocolate still rising
Methodology
Stats NZ measures food price inflation by tracking the prices of individual items that make up a representative ‘basket’. Foodstuffs NZ measures the prices of a basket of products in the same categories Stats NZ monitors, applying the same weighting and methodology to calculate a year-on-year rate, comparing the latest month with the same month one year earlier.
