“In terms of looking forward,we don’t see any relief for the rest of the year,” said Sean Smith,the chief of Frugl,an app that tracks and compares grocery prices. “Overall,the prices are going to go up. And that will continue.”
Aperfect storm of factors has pushed retail costs higher. These include border closures during COVID which has led tocritical labour shortages thatbig business has now flagged as a priority for the Labor government. Floods in Queensland and northern NSW haveadversely impacted crops and transportation,while Russia’s war on Ukraine has exacerbated matters by reducing global supply of oil and wheat.
Farmers and retailers have tried to absorb these rising costs over the past few months,Smith said. But “our view is that they’ve really reached breaking point,and they just can’t absorb any more”.
What will cost more?
Soft drinks,instant coffee,cooking oil,some canned goods and beef sausages are among the grocery items that have seen the sharpest price rises. Since the end of 2021,shoppers are now paying 50 per cent more for a 2-litre bottle of Coca Cola and Moccona instant coffee,according to Frugl data provided toThe Herald andThe Age. Meanwhile,Crisco’s sunflower oil has increased 20-30 per cent.
Baked beans and spaghetti in tomato sauce have risen by more than 30 per cent in some instances,while an eight-pack of beef sausages has increased by as much as 20 per cent.
National Farmers Federation chief economist Ash Salardini pointed to the long-lasting impacts of Russia’s invasion of Ukraine. Together,the two countries make up 30 per cent of global grain supply and areknown as the world’s breadbasket. They are also key exporters of vegetable oils.