16 July 2021.
Retail NZ is not surprised that there has been a substantial 3.3 per cent increase in the Consumer Price Index over the past year, and says retailers are expecting price rises to come over the next few months.
“The 3.3 per cent movement reported in the Consumer Price Index today is the biggest rise in inflation for many years, and retailers are forecasting significant price increases in the months ahead,” Greg Harford, Retail NZ’s Chief Executive said today.
“There is significant pressure on the costs of retail goods, and we will likely see more price rises in months to come. In our recent Retail Radar survey, two-thirds of retailers reported that they would likely be seeing price increases during the current quarter, with an average 7.5 per cent increase expected.”
“The bottom line is that retail businesses are facing substantial cost increases at the present time. There have been considerable increases in wage costs as a result of the latest Minimum Wage hike that kicked in from 1 April and the Government’s decision to double the costs of sick leave entitlements. Additionally, retailers have seen the cost of freight double or triple over the past 18 months, the cost of goods increase, and the costs of utilities, such as electricity, are going up substantially.
“The current cost pressure environment means the retail sector is doing it tough, this unfortunately means consumers need to cover the growing costs”.
For further information, please contact:
Greg Harford
Chief Executive, Retail NZ
[email protected]
027 243 2842
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