Instant coffee prices at major supermarkets have risen past $50 per jar as a result of tightening global supply, poor weather in producing regions and a weaker New Zealand dollar, economists and supermarkets say. New World is advertising a 400g jar of Moccona classic medium roast for $53.99, while Woolworths lists it for $42.99 on special, according to RNZ business.

Westpac senior economist Satish Ranchhod said global coffee prices are high due to poor weather in major producing regions including Vietnam and Brazil, compounded by recent increases in global fuel costs. BNZ chief economist Mike Jones said a classic global supply shock is at the root of the increase, noting the global price for coffee has roughly doubled over the past four years, according to RNZ business.

Stats NZ data shows the average price of 100g of instant coffee rose from $6.25 in July 2019 to $8.02 in July of this year, after dipping to $5.40 in late 2020. Woolworths said tightening global supply, market volatility and a weaker New Zealand dollar influenced the pricing, according to RNZ business, RNZ business (NZ) reports.