Australian shoppers could soon be hit with grocery, produce price increases

Aussie shoppers could soon see a fresh hike in their grocery bills as some manufacturers face cost increases of up to 700 per cent.

Australians may soon see a significant hike in their grocery bill, with the spike being blamed on a diverse range of factors.

Fruits and vegetables are set to be among the items most impacted with some grocery manufacturers facing up to 700 per cent cost increases.

Australian Food and Grocery Council CEO Tanya Barden said there were “so many factors” that contribute to the upward shift.

“There are so many factors that are contributing to cost increases. There’s a 500 to 700 per cent increase in shipping charges,” she told 3AW.

Shoppers could soon face produce price increases. Picture: NCA NewsWire / Daniel Pockett

“So whether it’s ingredients, packaging or finished products the sea freight would have increased by a significant amount.”

“We’ve seen also through Covid a cost increase of labour due to Covid safe measures.

There’s also been some shortages of particular ingredients, along with freight disruption and the big weather events which have impacted on fresh, dairy and meat production.”

Ms Barden’s comments come days after new UBS data revealed just how much costs had impacted the consumer.

Woolworths prices increased by 4.3 per cent in the first quarter of 2022, compared to the previous quarter when they were up 1.4 per cent.

Meanwhile Coles’ prices have gone up 3.2 per cent.

Cost-of-living pressures have become a key issues for Australians ahead of the May 21 federal election.