The cost of grocery goods supplied to supermarkets has increased 2.3% over the past year, with fresh produce and protein among the main drivers of the rise.

The latest Infometrics Foodstuffs New Zealand Grocery Supplier Cost Index showed suppliers charged supermarkets an average of 2.3% more for goods in February 2026 compared with the same month last year.

Infometrics Chief Executive and Principal Economist Brad Olsen said the February increase matched the rise recorded in January, even though more individual products experienced cost increases.

“February’s increase was in line with January’s result, even with a significantly greater number of items experiencing cost increases,” Olsen said.

“Those two trends together indicate that supplier cost pressures aren’t necessarily accelerating across the board, but that specific groups of items are facing more direct cost pressures at present.”

Supplier costs rose across almost every supermarket department over the past year.

Olsen said produce recorded the fastest increase, with annual costs rising 2.9%.

“Annual average produce department costs rose 2.9%pa, the fastest in two years, with notable increases in cucumber and mandarin costs recently,” Olsen said.

Protein prices also remained under pressure.

“Continued strong demand for protein, relative to supply, kept butchery and seafood department costs higher, while lower dairy prices saw chilled food department cost gains ease back slightly. Grocery department costs rose 2.3%pa, with higher costs for bread, chips, chocolate, and noodles.”

The index also showed the number of individual products increasing in price has begun climbing again.

Nearly 3,700 items rose in cost between January and February, pushing the average monthly increase over the past year to more than 3,000 products for the first time since mid 2024.

“Although part of February’s higher number follows two lower months during the summer moratorium, the trend number of cost increases has been slowly but steadily rising, with more butchery, grocery department, and produce item increases recorded recently.”

Olsen said global pressures could push supplier costs higher.

“Along with international freight costs and logistics challenges, higher costs stemming from the Middle East conflict are hitting the economy, including production, processing and transport costs, raising concerns about further cost gains going forward.”