Price increases - are they happening?

Consumer pricing experts says ongoing price increases are still present across three quarters of shopping categories

 

In the wake of China's manufacturing sector resuming operations and New Zealand's declining inflation rates (6.7 percent in March 2023*), new PriceSpy research looks at the pricing trajectory across consumer good items.

 

The study examined average price points across thousands of products listed under popular shopping categories on PriceSpy in June 2023. These were then compared to average price points across the last year, to see whether price points were showing signs of falling or still increasing.

 

PriceSpy’s research found:

• Average price points across almost three quarters of the shopping categories researched (73 per cent) cost more in June 2023, compared to the rest of the year**;
• The most significant price hikes came from the following shopping categories:
  • Games & Consoles – up by a third (33 per cent) in June 2023 compared to the rest of the year**
  • Kids & Family - up 17 per cent in June 2023 compared to the rest of the year**
  • And Garden - up 12 per cent in June 2023 compared to the rest of the year**
• On a more positive note, the research highlighted that some shopping categories were becoming more affordable:
  • Across the shopping category of Audio & Video goods, average prices fell minus nine per cent less in June 2023 vs the rest of the year**;
  • And for Sports & Outdoor goods, average price points dropped minus six per cent in June 2023 vs the rest of the year**;

 

Carl Lindholm, a spokesperson for PriceSpy, says: “Despite the resumption of China’s manufacturing factories and the recent drop in inflation rates, our research indicates that price points across many consumer goods have not yet started to decline.

 

“Interestingly, average prices across three quarters of the shopping categories studied were found to be higher in June this year, compared to the annual average, says Carl.

 

“And, surprisingly, amongst the biggest price surges came from the category of ‘kids and family’, where average price points were found to cost approximately $81 more in June 2023, compared to the rest of the year**, says Carl.”

 

According to PriceSpy's research, the average prices of games and consoles surged most, increasing by a third (33 percent) in June 2023 compared to the rest of the year. And average price points of garden goods also rose, up 12 percent in June 2023, compared to the rest of the year.

 

 

PriceSpy research – biggest average price increases in June 2023 vs rest of the year**

 

Shopping category	Weighted average price (across last 365 days)**	Weighted Average price June 2023	Difference ($)	Difference (%)	Is now more expensive?
Games & consoles	$244	$324	+$80	+33%	More expensive in June 2023
Kids & Family	$486	$567	+$81	+17%	More expensive in June 2023
Garden	$693	$773	+$80	+12%	More expensive in June 2023
Beauty & Health	$202	$222	+$20	+10%	More expensive in June 2023
Phone & GPS	$789	$845	+$56	+7%	More expensive in June 2023
Computers & Accessories	$564	$592	+$28	+5%	More expensive in June 2023
Home & Interior	$1,003	$1,022	+$19	+2%	More expensive in June 2023
Camera & Photo	$1,922	$1,943	+$21	+1%	More expensive in June 2023

Source: PriceSpy

 

Encouragingly, PriceSpy’s study did reveal average price points across 27 percent of the shopping categories it researched decreased in June 2023 compared to the rest of the year**.

 

Furthermore, the biggest price drop came from the category of audio and video, where average price points dropped minus nine per cent in June 2023 compared to the rest of the year.

 

PriceSpy research – biggest average price drops in June 2023 vs rest of the year**

 

Shopping category	Weighted average price (across last 365 days**)	Weighted Average price May 2023	Difference ($)	Difference (%)	Is now more expensive?
Audio & Video	$1,234	$1,117	-$117	-9%	Less expensive in June 2023
Sports & Outdoors	$539	$505	-$34	-6%	Less expensive in June 2023
Fashion & Accessories	$203	$207	-$4	-2%	Less expensive in June 2023

Source: PriceSpy

 

Carl adds, "While our research does reveal a potential decline in prices for some shopping categories, when compared to the yearly averages**, there were significant disparities between the largest average price increases and decreases.

 

“This suggests that price increases are still outpacing decreases, highlighting the current market landscape."

 

Carl continues: “The ongoing price increases can be attributed to several factors, with inflation likely to be the primary driver.

 

“Additionally, increased demand exerts pressure on prices as supply struggles to keep up, while supply chain disruptions and component shortages introduce delays and additional costs.”

 

“Rising manufacturing expenses, encompassing labour and raw materials, further contribute to elevated product prices. Furthermore, while it’s not necessarily a common practice, "greedflation" and potential business benefits may influence pricing strategies as companies seek to optimise profitability.”

 

To help consumers navigate these challenging conditions and make informed purchasing decisions, PriceSpy offers consumers the following five fundamental shopping tips:

 

• Avoid panic buying and conduct thorough research using a reliable comparison site like PriceSpy.
• Assess a product's price history to evaluate the value of current prices.
• Consider purchasing second-hand if prices are too high.
• Explore older models with favourable reviews as an alternative to expensive new releases.
• Exercise patience and wait for prices to potentially decrease before making a purchase.

 

Carl concludes: "Regardless of the intended purchase, whether it's a routine grocery run or a major appliance or tech device, our latest findings highlight why conducting vital pricing research before buying is paramount at the moment."

 

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