A new tool helping Tauranga and Western Bay of Plenty grocery shoppers monitor supermarket prices shows people in rural areas tend to pay more for basics than urban shoppers.
It comes as food prices continue to rise nationally – up 4.6% in the 12 months to June, according to Stats NZ. This was the largest rate of increase since late 2023.
SocialLink’s Local Grocery Shop Dashboard was launched last month by the charitable trust’s data-focused Community Insights arm.
The online dashboard has been tracking monthly supermarket prices for a standard shopping list for a family of two adults and two children since June 2023.
The 68-item list includes breakfast staples, fresh produce, meat, dairy, pantry basics and hygiene products.
An online mystery shopper chooses the cheapest option for each product, or closest substitute, at seven supermarkets in Tauranga and Western Bay.
These included the Pak’nSave, Woolworths and New World supermarkets on Cameron Rd, Woolworths and New World in Te Puke, Woolworths Katikati and Pak’nSave Pāpāmoa.
The cost of the shop averaged $215.88 in April, breaking down to $221.47 across the Western Bay supermarkets and $211.69 in Tauranga.
The average cost for Western Bay has consistently been higher than Tauranga since the research began, with the difference ranging from about $6 to $27.
SocialLink research advisor Liz Stewart said supermarkets, grocery outlets and butchers in smaller towns and cities were expected to be affected by higher transport delivery costs and smaller customer bases.
“Customers are facing higher prices because of a lack of choice.”
SocialLink found the limited availability of low-cost “home brand” products in towns such as Te Puke and Katikati left consumers no choice but to buy more expensive substitutes.
Stewart said prices of items such as dairy products were still high and affecting people’s choices.
Stats NZ reported the average milk price was $4.57, up 14.3% annually, and butter was on average $8.60 per 500 grams, up 46.5% annually.
Higher prices for fruit (up 5%) and vegetables (up 0.8%) drove the 1.2% monthly increase in food prices.
“Fixed costs like rent have to be paid first, so low-income families have less disposable income to spend on food and groceries,” Stewart said.
Tauranga Community Foodbank general manager Nicki Goodwin said that for some clients, after paying rent, there was next to nothing left for other living costs.
“We understand the struggle our clients feel at the supermarket, because we feel it too.”
She told the Bay of Plenty Times it was a daily issue trying to source bulk grocery items at a fair price.
The foodbank saw an 18% increase in people needing support in the first months of 2025 compared to the same period last year.
“There has been a huge increase in people needing a full week of grocery support rather than just four days to get through,” Goodwin said.
She said there was no way the foodbank could afford to purchase fresh produce and meat from supermarkets.
“We are constantly adjusting what we purchase and offer so that we can keep to our own budget while still meeting our nutritional goals for the community.”
Foodstuffs, which owns New World and Pak’nSave brands, commissions Infometrics to track what grocery suppliers charge its supermarkets.
The Grocery Supplier Cost Index for June showed a 2.1% increase, compared to a year earlier, with costs rising across all departments, said Infometrics chief executive and principal economist Brad Olsen.
“Higher international food and export prices for items like dairy products are contributing to domestic costs [increasing] too.”
Woolworths New Zealand said New Zealanders were facing cost-of-living pressures, and great value was essential for customers.
“Buying seasonally is a great way to save.”
David Stewart, the owner of the Fresh Market Greengrocer in Gate Pā, Tauranga, said people should buy produce that is in season and what’s on special to avoid high prices.
Stewart said it was frustrating from his point of view and for other growers because the price of produce was actually “very, very reasonable” compared to what it should be.
“We know people don’t have a lot of spare money at the moment, and if there is produce we can do at reasonable prices, then yes, we will.”
He told the Bay of Plenty Times he had $1/kg on carrots, $1/kg on brown onions, $3 on cauliflowers.
He reiterated the importance of buying in season and on special.
“There’s a variety of stuff, plenty of selection and options if people look around.”
Kaitlyn Morrell is a multimedia journalist for the Bay of Plenty Times and Rotorua Daily Post. She has lived in the region for several years and studied journalism at Massey University.