Inflation crisis rebounds as shock cheese price spike revealed

A shocking spike in the price of one supermarket staple has exposed the pain Aussies are facing at the checkout.

“To brie or not to brie?”

That is the question Australian consumers will be asking themselves in the refrigerated aisle at their local supermarket after a stunning 16 per cent rise in the price of cheese was recorded in the year to September.

Inflation has increased 5.4 per cent over the past 12 months, according to the Australian Bureau of Statistics, as high petrol costs, the tight rental market and soaring electricity costs pushed consumer prices higher.

But other goods have also driven up inflation.

Cheese prices have soared 16 per cent in the year to September. Picture: NCA NewsWire / Nikki Short

Indeed, across the entire basket of goods the ABS uses to calculate the consumer price index, cheese prices spiked by more than any other product.

Prices for dairy products across the board rose by 12.1 per cent in the past year due to elevated farmgate milk prices, the ABS said, while other operating costs including electricity and labour also drove up prices for the gastronomical experience.

Aside from cheese, other increases in dairy staples were also significant. Ice cream prices rose 11.2 per cent, while milk prices rose 5.5 per cent over the same period.

But not all items in the supermarket trolley were marked up – fruit and vegetable prices fell 6.4 per cent in the year to September, the ABS data showed.

The skyrocketing price of cheese will come as another blow to households already struggling with the cost of living crunch.

Dr Chalmers did not answer any questions specifically about cheese. Picture: NCA NewsWire / Martin Ollman

Responding to questions about food inflation on Wednesday, Treasurer Jim Chalmers said that prices in the grocery sector were under “constant review”.

“We expect all supermarkets and all retailers in the grocery sector to treat their customers fairly,” Dr Chalmers said.

“We want to see their prices come down when some of their input costs come down.”

Dr Chalmers added that the government was currently considering a review of the Food and Grocery Code which was provided to the government by the Department of Treasury in September.

But shadow treasurer Angus Taylor blamed the government for exacerbating inflationary pressures.

“They can acutely feel the pain of Labor’s cost of living crisis in their bank accounts and household budgets,” Mr Taylor said.