Struggling households are set to face further financial pressure as food prices are expected to rise sharply in the coming weeks, driven by the ongoing impact of the Middle East conflict and the worsening fuel crisis.
Retailers, who have been absorbing rising costs since the war began, are now being forced to pass these increases on to consumers. As a result, essential food items such as meat, fruit, and vegetables could see price hikes of up to 20 percent within the next few weeks.
Independent supermarket chain Ritchies has warned of the imminent increases, highlighting the growing strain on suppliers and distributors.
According to NSW Farmers, producers are already feeling the impact, particularly those transporting goods over long distances. Additional fuel-related costs, including transport levies, are significantly increasing the price of delivering produce like onions and lemons to market.
Dairy prices are also expected to climb, with farmers requesting an increase of around 30 cents per litre for milk, as processors struggle with high diesel costs and fertiliser shortages.
Retailers say they can no longer absorb the escalating transport and production expenses, meaning consumers will soon bear the full impact.
Economists warn that the anticipated 20 percent rise in fresh food prices may only be the beginning, with further increases likely if the conflict continues to disrupt global supply chains.
Meanwhile, global food pressures are already evident, with the United Nations reporting a 4.3 percent rise in global wheat prices last month, as farmers reduce planting due to ongoing challenges.
