Why are we paying $50 for instant coffee?
Instant coffee prices in New Zealand have surged, with some jars exceeding $50 due to global supply shocks and poor weather in major producing nations like Vietnam and Brazil. Economists note that a weak New Zealand dollar and rising fuel costs have further exacerbated the price hikes.
Why it matters
The rising cost of basic consumer goods highlights the impact of global supply chain volatility on local household budgets.
Instant coffee creeping past $50 for a jar is a symptom of wider pressure on coffee prices, economists say.
New World is this week advertising Moccona classic medium roast in a 400g jar for $53.99.
A listing for $50+ instant coffee at New World supermarkets.
Woolworths said there were a number of factors that influenced the price of coffee including a tightening global supply, market volatility and a weaker New Zealand dollar.
Westpac senior economist Satish Ranchhod said global coffee prices were high, in part due to poor weather in some of the major producing regions, such as Vietnam and Brazil.
"Those production cost pressures will have been compounded by the recent increases in global fuel costs."
At BNZ, chief economist Mike Jones said he was caught out by the price when he went to buy more instant coffee on Sunday.
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