Australia’s consumer price index for the September quarter,released on Wednesday,showed annual inflation hasreached its highest level since 1990 at 7.3 per cent, with fruit and vegetable prices rising 16.2 per cent.
Cain said the federal budget’swarning of soaring power prices on Tuesday would spook shoppers,many of whom were already changing their habits to ensure their groceries went further. Recent surveys showed that shoppers on lower incomes were looking to spend less on fresh produce and meat and were trying to minimise food waste by batch cooking recipes or making meals to freeze,he said.
“Probably the biggest concern[in the budget] were the remarks about energy price increases over the next 18 months - that will obviously worry consumers,” Cain said.
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While the major supermarkets have embarked on widespread “price lock” campaigns to help create some certainty for customers about the price of pantry staples,outside these programs it’s likely more price rises are on the way.
“I’m expecting that this quarter we will see a further increase[in inflation],but I’m expecting that you’ll start to see things moderating in the first quarter of the next calendar year,” Cain said.
As long as there’s not more serious inclement weather,meat and produce prices should start easing next year,he said. However,as energy costs continued to climb,prices were also dependent on energy and fuel consumption in particular sectors,he said.