Shoppers who are hoping for the pinch on their wallets to ease will find little respite, experts say, with fresh fruit and veggies, cooking oil and staples like bread and pasta are among grocery items expected to climb further in price
and transportation, while Russia’s war on Ukraine has exacerbated matters by reducing global supply of oil and wheat.
Farmers and retailers have tried to absorb these rising costs over the past few months, Smith said. But “our view is that they’ve really reached breaking point, and they just can’t absorb any more”.Soft drinks, instant coffee, cooking oil, some canned goods and beef sausages are among the grocery items that have seen the sharpest price rises.
National Farmers Federation chief economist Ash Salardini pointed to the long-lasting impacts of Russia’s invasion of Ukraine. Together, the two countries make up 30 per cent of global grain supply and are“Things like bread, anything that requires wheat – I daresay you’re going to be paying 20 to 30 per cent more,” Salardini told this masthead.Most of that has already been priced in, but there’s further to go, he said. “Don’t expect any drops in the next 12 months.
Smith believes the cost of fresh produce will climb. “I don’t think this is coming. It’s happening now,” he said. “The fresh aisles ... are just quite bare.” This will push up demand elsewhere. “If there’s a shortage in fresh [produce] – there’ll be a shortage in frozen as well.”