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Raw material costs eating at consumers

Supplier News

AUSTRALIA’S inflation figures provide further evidence of the rising food costs faced by consumers.

The latest Australian Bureau of Statistics Consumer Price Index data shows the food price index rose 1.8% in the December 2005 quarter compared to the previous quarter, easily outstripping the general inflation rate of just 0.5%.

According to the Food & Agribusiness Research (FAR) group at a Rabobank , prices were pushed up across a range of product categories as manufacturers looked to pass on rising fuel, plastic and raw material costs, and adverse weather created supply shortages in some product lines. However, against the general trend the price of several major meat categories weakened during the period, while wine prices have been stable over the entire year.

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