Supermarket chain Foodstuffs says customers will face higher prices for milk in the next two to three weeks after a rise in the wholesale price of milk for supermarket brands of eight cents a litre.
Mark Baker, general manager of retail at Foodstuffs in Auckland, says Fonterra indicated three or four weeks ago that the wholesale price of milk would increase by eight cents a litre.
Foodstuffs represents the Pak 'N Save, New World and Four Square supermarket chains.
Mr Baker says he expects the increase to be passed on to customers in the next two to three weeks. However, there are no indications for now that the price of butter or cheese will increase.
Fonterra has not given a date for the price increase to take effect, but says it will apply only to the supermarkets' house brand milk.
The milk price increase has led budgeting services to warn that constant rises in the cost of basic items are grinding down families.
The New Zealand Federation of Family Budgeting Services says the milk price increase will further squeeze families already struggling to meet their weekly food bill.
It says the constant increases to petrol prices, mortgage rates and basic food items are hurting families badly.
Age Concern says the 3% superannuation increase in April was swallowed up by the first round of food price rises.
