Costs from grocery suppliers to supermarkets increase 2.0%pa in April

The pace of supplier cost increases to Foodstuffs supermarkets in April was slightly lower than last month, with the Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI) showing an average 2.0% increase in what suppliers charged in April 2026, compared with a year earlier.

“The increase recorded for April was a further slowdown from results in recent months,” said Infometrics Chief Executive and Principal Economist Brad Olsen. “These slower cost increases still largely pre-date rising costs stemming from conflict in the Middle East, with only some limited increases for produce showing through so far.”

“Given usual lead times for cost changes to flow through supply chains, we expect more of the immediate direct impacts to show through over the next few months,” said Mr Olsen. “There are multiple cost channels that are all undergoing adjustments at present. Fuel costs are set to influence costs first, followed by wider pressures from plastics and packaging costs, with further operating cost rises, like for fertiliser, showing through over time.”

The Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI), commissioned by Foodstuffs New Zealand, measures the change in the list cost of grocery goods charged by suppliers to the Foodstuffs North Island and Foodstuffs South Island co-operatives. The Index utilises detailed Foodstuffs NZ data across over 60,000 products the Foodstuffs co-ops buy to stock in their 500+ stores, making it the largest dataset of its type in New Zealand, to give a real-time view on supplier cost changes.

Every month, the Index tracks what it costs supermarkets to buy the goods to put on the shelf. Previous analysis shows that supplier costs are the major component of supermarket prices, representing two-thirds of the on-shelf price.

Supplier costs rose across all departments in April compared with the previous year. “Protein costs rose further, with average seafood supplier costs up 4.9%pa as fresh fillet and salmon costs rose. Pork costs also rose in April, as higher demand and price rises for protein started to spread,” said Mr Olsen. “Bread and grain costs also increased in April, keeping the grocery department average increase at 2.1%pa. Produce costs rose 2.5%pa on average, with notable increases in costs for broccoli, kumara, and capsicums.”

Month on month, just over 2,200 products increased in cost from March to April 2026, with the 12-month average pulling back slightly to just over 2,900 per month. “There was a larger-than-normal proportion of cost changes of a greater magnitude in April, particularly for produce, which likely reflects some early adjustments to transport for more perishable items,” said Mr Olsen. “Wider cost changes related to the Middle East conflict haven’t yet shown through in the April numbers, but are expected to show through in coming months.”

“Current trends indicate pre-conflict supplier cost adjustments were generally constrained, with larger existing increases for some household staples due to other global factors.”

ENDS

Note:

The Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI), commissioned by Foodstuffs New Zealand, measures the change in the list cost of grocery goods charged by suppliers to the Foodstuffs North and South Island cooperatives.

List cost refers to the cost suppliers charge retailers before trade spend is applied; trade spend being any form of discount provided by a supplier to allow their goods to be discounted.

The Index utilises detailed Foodstuffs NZ data, across over 60,000 products, analysed by independent economics consultancy Infometrics to produce the GSCI and publish it on a monthly basis. For more details see economics.infometrics.co.nz/report/grocery-supplier-cost-index.