Australia faces a huge price increase in grocery staples, and even this price increase impacts the cost of everyday items like Vegemite. UBS economists conducted an analysis and found that food inflation currently stands at 9.6 %, higher than the overall inflation rate of 7 %. Prices for daily items like vegemite have risen by 8%, peanut butter by 9%, and certain yogurts by 12%. While fresh food prices increase, they may decrease to provide ease to the community.
Soaring inflation and interest rates hike by Reverse Bank has escalated the cost of living and put pressure on Australians. In a survey conducted by Media, they found that only 31 % of respondents believe that the federal budget is a beneficial step for their households, despite their support for energy bills subsidies and increased Medicare spending.
UBS’s research, which monitors over 60,000 grocery product prices at Coles and Woolworths monthly, found out that fresh food prices increased by 9.9 % in the year up to April, while other dry grocery goods saw a rise of 9.4% and prices of breakfast goods such as dairy products increase up to 13 % over the past year. The high food inflation directly affects Australian daily life, and many of them start selecting cheaper goods instead of their preferred brands.
The Australian government predicts a huge decrease in inflation from 6% at the end of 2022-2023 to 3.25%. Treasurer Jim Chalmers stated that the government aims to stimulate wage growth to counter inflation and provide ease to the local Community of Australia.