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Australian food prices forecast to rise by 7 per cent amid cost pressures
Countrywide Foodservice Distributors has warned that Australian food and drink prices could rise by as much as 7 per cent in the coming months, as businesses face mounting costs across the supply chain. The increase could affect households through supermarkets, cafés, restaurants and other food services, adding to cost-of-living pressures.
Countrywide represents almost 100 wholesalers supplying more than 80,000 businesses. Its warning follows a rise in annual food inflation from 3 to 3.2 per cent, with beef and veal up 5.8 per cent, milk 5.4 per cent and fruit 10.2 per cent. Foodbank reported that 3.6 million Australian households experienced food insecurity in the past year, 100,000 more than in 2025; the National Farmers’ Federation has urged governments to avoid policies that increase production costs.
In short
- Countrywide warns food prices could rise by up to 7 per cent.
- Fuel, energy, labour and other costs are squeezing suppliers.
- Food insecurity affected 3.6 million households in the past year.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Businesses facing higher costs for ingredients, transport and other parts of the supply chain may need to raise prices to remain viable. Allowing prices to reflect those costs can help sustain wholesalers, farmers and food services, while avoiding policies that add further burdens to production.
The case against
Further food price rises would deepen pressure on households already struggling to afford enough food, with food insecurity affecting millions of Australian households. Governments and businesses should look for ways to ease supply-chain costs and protect access to essentials, rather than pass the full increase on to consumers.
Explained simply
Australia’s food supply relies on farmers, manufacturers, wholesalers and retailers, with costs at each stage affecting what consumers pay. Countrywide Foodservice Distributors represents nearly 100 wholesalers that supply food businesses, including cafés and restaurants.
Food prices have been rising at different rates: recent figures show increases for beef and veal, milk and fruit. Foodbank says millions of Australian households experienced difficulty accessing enough food in the past year, while the National Farmers’ Federation has called on governments to avoid measures that add to farmers’ costs.
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Originally published by Daily Mail as “‘Seven per cent is realistic’: Millions of Aussies warned to expect another cost of living hike as supermarket freight boss sounds the alarm”.