There’s some positive news as a recent analysis reveals that Australian growers will have a strong year. This means that plenty of fresh food is set to hit the shelves, helping to ease the pace of inflation at the major supermarkets.
Rabobank food retail analyst Michael Harvey said: “We will pass the peak in terms of the headline inflation story and also the food inflation story [in 2023].” Still, he did caution that shoppers shouldn’t expect grocery bills to return to pre-pandemic levels, with much of this price growth locked in.
“Some of the pressures on the food system have started to recede, [but] it’s going to take a little bit longer before we start to see big downward [price] pressure coming through.”
Grocery supermarket prices rose more than 9 per cent during 2022, driven by rising costs for farmers and other food producers, alongside natural disasters like floods, which caused huge shortages. But Rabobank analysis predicts Australia’s farmers will be better off this year with more moderate weather forecast and fewer pressures on supply chains.
Fresh fruit and vegetable prices are already falling heading into 2023, and are expected to continue becoming cheaper in the March quarter.
Source: thenewdaily.com.au