The country’s leading food and grocery industry group has warned that its members must pass on their rising costs, which will lead to higher prices for supermarket customers.
In comments likely to add to concerns about inflationary pressures, the Australian Food and Grocery Council said in a statement that the wholesale prices they received had risen more slowly than input costs in the course of the last decade. Manufacturers had absorbed a lot of costs before the Covid-19 pandemic over the past two years.
“The cost of shipping ingredients and finished products to Australia has increased by 500-700%. There have also been significant costs to businesses due to COVID safety measures, domestic freight cost increases caused by weather disruptions, pallet shortages and packaging cost increases,” the CEO said on Monday. of ACEC, Tanya Barden, in a statement.
“In addition to this unprecedented COVID disruption, manufacturers are facing increases in global raw material prices due to the situation in Ukraine and they are now seeing increased labor costs.
“Manufacturers no longer have the ability to continue absorbing these increased costs.”
Official inflation data for the first quarter of the year will be released April 27.
Recent economic surveys have highlighted high inflation since the start of 2022, as well as the likelihood of the Reserve Bank raising interest rates, which has not happened since 2010.
An ANZ report released on Friday predicts an increase in inflation of 1.8% in the first quarter, and that year-on-year inflation will be 3.4%, above the RBA’s target range of 2-3%.
Picture: Shutterstock.com/Davizro Photography
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