The cost of groceries in Australia has risen by almost 10 per cent in the past year, according to the Frugl Grocery Price Index.
Frugl analysed data from different grocery items across Australia to come up with the figure.
As per the analysis, since 2019, grocery prices have increased annually by the biggest margin yet, with a 9.49% price increase from this time last year.
The most evident increases were seen for dairy and eggs at 9.05 per cent and for bakery goods at 4.94 per cent.
According to the research, dairy and eggs are now 13.72 per cent more expensive than they were 12 months ago.
The prices of house cleaning products increased by 16.14 percent while beef prices went up 14.44 percent.
Sean Smith, the managing director and CEO of Frugl, said that several factors were impacting the supermarket prices of products.
“After crops recovered from floods earlier in the year, fruit and vegetable prices were driven down by a strong supply of in-season produce,” he said.
“Shoppers should anticipate further price increases and supply shortages as more extreme weather is forecast; however, this may be short-lived.”
The cost of food is also likely to have a flow-on effect to other areas of the economy, as businesses attempt to pass on their higher costs to customers.
This could lead to inflationary pressures and, ultimately, higher interest rates.
The Reserve Bank has already flagged its concern about the impact of higher food prices on inflation, and it is possible that the central bank may raise interest rates in an attempt to keep inflation in check.
Higher interest rates would be a further blow to households struggling with the cost of living, and could tip some into financial hardship.
The government has also come under pressure to do more to help households cope with the rising cost of living.
