These are the grocery items food inflation is hitting hardest

As the cost of living continues to rise, basic grocery items such as dairy products and bread have had some of the highest price increases.

An older women shopping in the bread aisle at Woolworths

According to data from the Australian Bureau of Statistics, bread and cereal products have increased in price by 11.8 per cent in the past year. Source: Getty / Xinhua News Agency/Xinhua News Agency

Key Points
  • Inflation has hit an annual rate of 7 per cent, but for some grocery items, it's much higher.
  • Dairy items have risen by almost 15 per cent, while bread products have increased by almost 12 per cent.
  • Advocates say the government needs to provide more support for those facing poverty.
If your grocery bill seems to be rising every time you head to the shops, you're not alone.

have been ongoing issues across the country over the past year, and grocery bills are one of the key areas Australians are feeling the pinch.

On Wednesday, the Australian Bureau of Statistics (ABS) released the latest Consumer Price Index (CPI) figures. The CPI measures price changes across a fixed basket of goods and services over time and is used as an indicator of inflation.

The CPI rose 1.4 per cent in the three months to March, taking annual inflation to 7 per cent.

For some everyday items, the rate is much higher.

Which groceries are increasing the most?

, food and non-alcoholic beverages had some of the largest price increases, behind housing and recreation and culture.

In grocery products, the biggest increase was found in dairy products, which had an annual price increase of 14.9 per cent.

The price of bread and cereal products increased by 11.8 per cent, while food products n.e.c (not elsewhere classified) rose by 11.3 per cent.
Graph showing price increase across categories of grocery items.
The annual rate of inflation is 7 per cent, but it is much higher across some types of groceries. Source: SBS News
Jay Coonan, co-coordinator at the Antipoverty Centre, said many shoppers have had to change their grocery habits.

"This is something we saw happening in real time ... people no longer buying fresh produce and buying frozen produce," he said.

"Whereas people who were (already) relying on frozen goods as a stable, they're no longer having easy access to that because more people are switching to it."
Factors such as the war in Ukraine, the ongoing effects of the COVID-19 pandemic, climate change and rising production costs have all contributed to the increase in prices of grocery items.

But a also said companies had been putting up prices more than they needed to.

Mr Coonan said a survey conducted by the Antipoverty Centre had found 53 per cent of respondents had resorted to skipping meals as a result of the rising cost of living.

"People are just simply going without at the moment, there's no alternative to it," he said.

How can you save money on groceries?

When it comes to easing the pressure of food and grocery costs, there are

Liam Kennedy, spokesperson for consumer advocacy group CHOICE, advises against shopping on "autopilot", and instead carefully considering how much you are paying for each item.

"We all do this from time to time, just buying the same things from the same brands ... pay more attention to what you're buying, and how you could be getting a better deal," he said.

"Another example of how you do this is by looking at things like unit pricing - the price per 100 grams - which allows you to compare different prices from different grams.

"And buying in bulk when you can ... things are usually better value."
Depending on your location, Mr Coonan says community pantries, food banks, and charities can all provide support for those in need.

Ultimately, he says the government should increase support payments for those facing poverty.

"That is all that we can do at this stage to ensure people are living above the poverty line and they're able to afford the goods that they need to survive," he said.

"Wages are just not sustainable, so you're going to have more and more people working more and more hours for less of a real wage ... more and more people are going to fall behind."

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4 min read
Published 28 April 2023 5:46am
By Jessica Bahr
Source: SBS News



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