New data from Stats NZ shows food prices rose 4 percent over 2025, while the price of a standard loaf of white bread jumped almost 60 per cent.
Shamubeel Eaqub, chief economist at Simplicity, said supermarkets had historically used bread as a loss leader, keeping prices low to attract shoppers even as costs rose.
“For a long time, bread was a loss leader for supermarkets,” he said. “Because the cost of inputs, particularly wheat, has increased so much, we’re now seeing the dam breaking and the price of bread increasing at the supermarket aisles.”
Global wheat prices suggest pressure remains, meaning the increase is unlikely to be reversed. Milk prices rose 15.8 percent over the year to $4.92 for two litres at the cheapest end of the market, while beef steak prices increased 21.7 percent over the same period.
White bread rose 58.3 per cent. Electricity and gas prices continued to climb, with power up 27.3 per cent and gas up 56 per cent since December 2021.
Stats NZ said some seasonal food prices fell during the month, with lettuce, cucumber, and avocado becoming cheaper, while soft drink and lamb prices also dropped.
But those movements do little to offset the rising cost of everyday basics that form the core of household spending.
Read more over at RNZ
The Centrist is an online news platform that strives to provide a balance to the public debate - where this article was sourced.
“For a long time, bread was a loss leader for supermarkets,” he said. “Because the cost of inputs, particularly wheat, has increased so much, we’re now seeing the dam breaking and the price of bread increasing at the supermarket aisles.”
Global wheat prices suggest pressure remains, meaning the increase is unlikely to be reversed. Milk prices rose 15.8 percent over the year to $4.92 for two litres at the cheapest end of the market, while beef steak prices increased 21.7 percent over the same period.
White bread rose 58.3 per cent. Electricity and gas prices continued to climb, with power up 27.3 per cent and gas up 56 per cent since December 2021.
Stats NZ said some seasonal food prices fell during the month, with lettuce, cucumber, and avocado becoming cheaper, while soft drink and lamb prices also dropped.
But those movements do little to offset the rising cost of everyday basics that form the core of household spending.
Read more over at RNZ
The Centrist is an online news platform that strives to provide a balance to the public debate - where this article was sourced.
2 comments:
Shamubeel Eaqub is wrong in his assumption that the price of grain is driving up the bread price. Below are the values we have been paid for milling wheat by Champion Milling over the last 6 years
2020 $440
2021 $450
2022 $470
2023 $640
2024 $589
2025 $490
2026 500 estimate
Outside of the short lived increases caused by the Ukraine war, grain prices are not the driving factor in 60% increase in bread.
I wish it was, the New Zealand arable industry is in crisis.
Another way to understand it is; when prices are rising across the board (unevenly, but the direction is unmistakable) it can be understood as the value of money decreasing.
So rather than food prices are up %50 it’s the spending power of the NZD is down %50 & this is reflected in the food price
Unfortunately this is a much worse but realistic position
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