Slowclimb in supermarket prices
A 10-year-old receipt from Countdown illustrates how food prices have changed – but it’s not a case of everything gettingmore expensive.
The receipt from Countdown Ferrymead, in Christchurch, shows slight increases in the price of groceries over the past decade, as well as decreases in the price of wine.
Travel writer Stephan Huy held on to the receipt to illustrate the cost of food in New Zealand for his German readers. The January 6, 2011, bill came to $239.32 and the same items on December 31, 2020, would have cost $240.03. Reserve Bank data shows general inflation of 53.3 per cent over the period.
When the alcohol was removed from the list, the groceries in 2011 cost $149.43, while in 2020 the same products cost $164.23, an increase of 9 per cent.
The price comparison surprised him. ‘‘I thought that the increase should have been more,’’ Huy said.
The shopping included items such as pasta, pasta sauce, milk and cheese as well as wine and beer but didn’t include fresh vegetables and meat.
Huy said he and his wife, Bruni Gebauer-Huy, tried to buy fresh products and bread at local markets and specialist stores.
The biggest price increase was with Buttersoft, a spreadable butter, which jumped from $6.55 in 2011 to $8.70 in 2020.
Milk increased just 41 cents over the past decade, from $4.08 in 2011 to $4.49 in 2020, while Mainland grated edam cheese dropped from $9.30 to $7.50. Wine showed the biggest price drop, with a bottle of Jacob’s Creek pinot noir selling for $14.30 in 2011 and $9 in 2020.
The receipt mirrored movement seen in the consumer price index. Infometrics chief economist Gareth Kiernan said the consumer price index over the past 10 years showed a slow climb in food prices.
Fruit and vegetables and meat were both up about 13 per cent over the past decade, Kiernan said.
Grocery items, which covered most supermarket products other than fruit and vegetables and meat, had increased just 3 per cent, he said.
Non-alcoholic beverages were up 11 per cent and alcohol was up 9 per cent.
‘‘Its one of those things – people are always seeing the price of food, and they notice the ones that jump up in price. They notice the variations,’’ Kiernan said.
‘‘Everyone complains when courgettes are $20 a kilo and pumpkins are $15 each, but they don’t necessarily notice that the price has stayed steady for a long period.’’
Given rising housing costs, the percentage of income spent on food might have slightly decreased for most households, he said.
In November, the Government announced a year-long market study of food prices at supermarkets.
Commerce and Consumer Affairs Minister David Clark said at the time that New Zealanders spent, on average, 17 per cent of their household income on groceries.