Supermarket supplier cost increases are slowing down from last year's inflationary spike

Latest figures from Infometrics show supplier costs increased just 3.7 percent in the year to February -- the lowest annual rise in more than two years.

Produce prices increased the least, after rising sharply during last year's severe weather.

Infometrics Principal Economist Brad Olsen says inflationary pressures are not hitting quite as badly, and costs are rising at a much less intense pace.