Inflation looms for snack staple with chip costs to rise

Aussies are about to be shocked by a rise at the checkout for some of their favourite snack brands, with a lunch box favourite on the hit list.

The price of Cheezels is set to rise after its manufacturer was hit by a whopping power bill, with customers’ checkout costs set to rise in response.

Snack Brands Australia chief executive Paul Musgrave confirmed consumers will have the cost increase of the company‘s power bill passed onto them.

The brand is now facing a $175,000 a week power bill after its energy provider went under due to the rising cost of energy.

The cost of the much loved snack will go up by 40 cents per packet.

“It’s an increase from $3 million to $9 million on an annualised basis,” Mr Musgrave told Channel 9.

“That’s a lot of coin for us as a business, and unfortunately that means that’s something that we have to ultimately pass onto consumers because that’s not something the business can absorb in any shape or form.”

A bag of chips will be 40 cents more expensive after the company passes on its soaring power bill, according to Mr Musgrave.

Bread and cereal products have seen a 10 per cent rise in their cost in the past year

Cheezels aren’t the only brand impacted, with popular corn chip brand CC’s also to be hit by higher costs.

CC’s, Kettle, Thins, Samboys, Natural Chip Co and Authentic French Fries will all have their prices impacted.

The cost of food is already contributing significantly to the 7.3 per cent rise in inflation recorded in October.

Food and non-alcoholic beverages rose 3.2 per cent in the September quarter to round out a shocking 9.0 per cent rise in the past year.

However, fruit and vegetables have had the biggest rise, at 16.2 per cent in the past year. Bread and cereal products have also seen a significant jump at 10.0 per cent.

Originally published as Inflation looms for snack staple with chip costs to rise