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Households already facing financial difficulties may soon encounter another hurdle, as food prices are projected to surge in the upcoming weeks.
Essential grocery items are anticipated to become more expensive due to the ongoing fuel crisis, which is impacting distribution costs.
Ritchies, an independent supermarket chain, is among the first to raise concerns about the impending price hikes.
Consumers can expect the cost of meat, fruits, and vegetables to climb by as much as 20 percent, potentially within a mere three weeks.
Leaders from NSW Farmers have indicated that their members are already feeling the strain of these escalating costs.
“Particularly the ones that have further to travel like onions and lemons which are already incurring a $1 per kilometre additional transport levy for those trucks bringing that produce to the distribution centres to get to consumers at the supermarkets,” Xavier Martin, NSW farmers president said.
The price of home brand milk is also expected to climb, with dairy farmers asking supermarkets to increase prices by 30 cents per litre as processors pay through the nose to combat high diesel and fertiliser shortages.
As for everything else, retailers have been absorbing exploding transport costs but now need to pass that onto shoppers.
Some economists say a 20 per cent price hike for fresh food is just the beginning with even further increases anticipated unless the war in the Middle East ends.
“Even if it ended today where has been impacts on supply chains that will be with us for weeks and months ahead,” Energy Minster Chris Bowen said.
New data from the UN says global wheat prices have already risen by 4.3 per cent last month, with farmers planting less because of the challenges they are facing.
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