RABOBANK REPORTS SHIFT IN FOOD INFLATION

By Jessica Dempster

New analysis from Rabobank has revealed Australia's food inflation problem has changed character over the past year, with prices diverging significantly between categories as households continue to face cost-of-living pressures.

RaboResearch senior food analyst Michael Harvey says food and non-alcoholic beverage prices rose 3.2% in the year to September, remaining below the national headline inflation rate of 4.3%.

Beef and veal prices increased 5.8% annually, although that figure has eased considerably from a peak of 13.5% in February. Pork prices, meanwhile, fell 1.3%, while poultry recorded only a modest 0.4%increase.

Fruit was another major source of pressure, with prices climbing 10.2%, while dairy products increased 3.5%, led by liquid milk.

Mr Harvey says consumers are becoming increasingly focused on value, with supermarket own-brand products gaining popularity as households manage tighter budgets. Weather risks, energy prices and geopolitical uncertainty remain important factors heading into 2027.