Subcategory Breakdown
Annual price movements within the ABS Food and non-alcoholic beverages CPI group. Based on most recent available data.
Source: ABS CPI, January 2026 release. Subcategory data from Table 4.
Food Inflation Trend
Annual food CPI movement over the past 12 months.
What Has Grocery Inflation Cost You?
Food prices are up ~23% since 2019. See what your weekly basket costs now versus what it would have cost before the inflation surge — and the total hit to your wallet since then.
Grocery Basket Inflation Calculator
Real cumulative cost of food inflation on your household since 2019.
ABS CPI Food group. Cumulative ~23% above 2019 (ABS). Household averages: single $120, couple $220, family of 4 $350/wk. Not financial advice.
What Drives Grocery Prices
Labour costs are the largest driver of supermarket price inflation. Since 2022, minimum wage increases have added significantly to operating costs across the entire food supply chain — from farm labour through to checkout staff.
Energy costs flow through to grocery prices indirectly. Higher electricity and gas costs affect food processing, refrigeration, and logistics. When energy prices rise sharply, food manufacturers and distributors typically pass on a portion within 3–6 months.
Supermarket market structure is a persistent issue in Australia. The dominance of two major chains — Woolworths and Coles — across most of the country limits competitive pressure on pricing. The ACCC's ongoing review of supermarket pricing practices, launched in 2024, has so far found evidence of significant pricing discretion that is not always exercised in consumers' favour.
Global commodity prices affect specific categories significantly. Grain prices (affecting bread and cereals) are heavily influenced by international supply, weather events, and shipping costs. Australian dairy prices track closely with global dairy commodity benchmarks despite Australia being a net exporter.
One bright spot is fruit and vegetables, where seasonal supply is currently strong and prices have eased slightly year-on-year. This category is the most volatile in the food basket and can shift quickly with weather events.