Rabobank Australia, Media Release, 27 July 2022

The latest quarterly Consumer Price Index (CPI) data, has shown a continuing rise in Australian food price inflation, with June 2022 quarter food prices increasing 5.9 per cent compared with the June quarter last year.

Rabobank senior food retail analyst Michael Harvey said this was the highest year-on-year increase seen in food prices in the CPI since the September quarter 2011, when yearly food price inflation had peaked at 6.4 per cent.

It compares with a 4.3 per cent year-on-year increase in food prices seen in the previous March 2022 quarter CPI data.

Mr Harvey said there had been an increase “across the grocery basket”, with prices rising for dairy, meat, fruit and vegetables and bread.

“There was also an increase in out-of-home food costs,” he said.

And Mr Harvey warned there was likely more food price rises to come, with the peak in inflation potentially not yet reached.

“Consumers still have some headwinds to navigate and higher average food basket costs expected to come,” he said.

The Australian Bureau of Statistics June 2022 quarter CPI data showed the main contributors to the rise in food prices included fruit and vegetables, which were up 7.3 per cent annually and 5.8 per cent on the previous quarter.

Prices for bread and cereal products were up 6.3 per cent annually and 3.1 per cent on the March quarter and meat and seafoods were also up 6.3 per cent annually, but only 0.8 per cent on last quarter.

Dairy and related product prices were up 5.2 per cent annually and 1.3 per cent on last quarter.

Meals out and take-away foods costs were up 4.7 per cent annually. Compared with the March 2022 quarter, prices increased 1.4 per cent, but 2.1 per cent excluding the impact of dining voucher schemes offered in some parts of the country.

Mr Harvey said there were a number of factors still exerting upward pressure on food prices, both globally and locally.