Food price rises have eased in Australia as the headline inflation measure increased marginally in the third quarter.
The headline consumer price index (CPI) rose 1.2% in three months until the end of September, up from 0.8% in the June quarter, according to the Australian Bureau of Statistics (ABS). At an annual rate, headline CPI was 5.4% compared with 6.0% in the previous quarter.
However, food prices only rose 0.6% this quarter, marking the softest quarterly rise since September 2021. The rise was driven by meals out and takeaway foods, which jumped 2.1%, but were partially offset by the price falls for fruit and vegetables, dropping 3.7%.
Food and non-alcoholic beverage prices rose 4.7% in the 12 months to September, up from the rise of 4.4% in August.
Michelle Marquardt, ABS head of prices statistics, said “CPI rose 1.2% in the September quarter, higher than the 0.8% rise in the June 2023 quarter. The rise this quarter however continued to be lower than those seen throughout 2022.
“While prices continued to rise for most goods and services, there were some offsetting falls this quarter including for childcare, vegetables and domestic holiday travel and accommodation.”
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Fruit and vegetable prices were the main fallers, sinking 3.1% compared to August prices and 5.4% lower on an annualised basis.
Marquardt attributed “favourable growing conditions” to falling fruit and vegetable prices for the quarter, including berries, grapes and salad vegetables.
Food products n.e.c. (products such as honey, syrups and soups) and bakery and cereal products were the two outlying categories that rose slightly month-on-month.
“September quarter’s annual increase of 5.4% is lower than the 6.0% annual rise in the June 2023 quarter. This marks the third quarter in a row of lower annual inflation, down from the peak of 7.8% in the December 2022 quarter,” Marquardt said.
Major Australian grocer Woolworths has also seen food sales increase in its opening quarter for the year due to lower fruit and vegetable prices.
The retailer stated: “In Australian Food, sales increased by 6.4% with sales growth largely consistent over the quarter with higher item growth offset by a moderation in inflation.”
