The research conducted by the UBS shows price hikes of food from 8.2% in the September quarter in two major food markets in Australia, Woolworths and Coles.
The UBS researcher Shaun Cousins with his team has tracked the prices of 60,000 food items and found food inflation to be the steepest in the fresh food category, especially dairy and meat.
In December quarter food inflation was at 9.6% which is more than the inflation which took place in september. Packed or ready-made grocery products were also prone to inflation in the December quarter while it was 7.8% in the September quarter.
Mr Cousins said “feedback from the food industry signalled there were substantial cost pressures for manufacturers and producers, and dry grocery prices would keep rising until at least June, 2023.”
“Trade feedback indicates cost pressures remain and are arguably still rising for dry grocery suppliers with further cost increases expected to support dry grocery inflation for the remainder of 2022-23,” he said.
Woolsworth is having a higher food inflation rate of 9.3% among other major food markets, and inflation rate at Cole is 9.1%
A separate study by UBS on dairy, meat, fruit and vegetables found that in the December quarter of 2022, prices in the above category rose 10 per cent higher than the December quarter of previous year.
The analyst Evan Karatzas has found that dairy products price increased 14 per cent in the span of one year, cheese and butter prices increased 24 per cent and 14 per cent respectively.
- Published By Team Australia News