Countdown’s July grocery prices drop by 1.9%

Countdown’s July grocery prices drop by 1.9%

New figures show grocery prices continue to fall,
3% cheaper than two years ago

11 August 2016: Prices in Countdown’s basket of 100 were 1.9 per cent lower in July versus the same time last year, and three per cent lower than the same time two years ago (July 2014).

Countdown tracks the prices of a basket of 100 of the most commonly purchased items in its supermarkets.

Countdown’s General Manager of Merchandise Chris Fisher says multiple factors drove Countdown’s lower prices in July, including a 9.2 per cent drop in health and beauty items, a 4.6 per cent drop in deli products and a 4.2 per cent drop across other food and beverage items.

“Countdown’s Price Lockdown programme contributed significantly to a price decrease in the July figures. Products in the programme are 4.6 per cent cheaper versus this time last year and 11.4 per cent cheaper than two years ago,” says Mr Fisher.

“Price Lockdown continues to offer Kiwi shoppers lower prices every day. In July household staples like bread, shaved ham, spreads and crackers were considerably cheaper than two years ago.”

While overall basket prices are down, produce prices were up by 13.5% compared to July last year due to weather and currency fluctuations. Cucumbers were more expensive in July, as a particularly long spell of dark winter days caused some crop failure. The price is expected to drop in August/September as new crops flourish. The high US dollar is also affecting the price of green grapes.

“There will always be external factors out of our control that affect prices, which is why we work hard to offer low every day prices in other areas,” says Mr Fisher.

Statistics New Zealand’s July Food Price Index showed that, after seasonal adjustment, there was a 1.3 per cent decrease in food prices nationwide compared to July last year.

ENDS

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