The cost of your weekly shop is about to spike again.
Economists are predicting a sharp rise in grocery prices this week as inflation figures are released.
Ritchies IGA CEO Fred Harrison said there were plenty of price increases coming through.
“Over the last two years, manufacturers have absorbed many of the small increases,” Mr Harrison said.
“If there has been a one or two per cent wage increase, manufacturers have absorbed that.
“It is now at a point where there is almost no more to give.”
In addition to this, Mr Harrison said the cost of freight has “more than doubled”.
“To try and get a truck driver, to even find a truck you are paying literally double,” he said.
‘We have just finished a supplier conference last weekend with 100 different suppliers and they told us the trials and tribulations they have trying to get transport.
“We all know about fuel. Fortunately, that is starting to come down a little bit now.”
Another factor affecting businesses is the cost of overseas shipping containers.
“Traditionally, if you had a container in October you were paying $1500 to bring the goods into the country,” he said.
“Today believe it or not, that is $15,000. 1000 per cent increase. It is bizarre.”
A shortage of materials such as pallets and hardwood is also affecting businesses as well as fewer workers in warehouses and manufacturing sites.
Fruit and vegetable prices remain high, including tomatoes for over $7 a kilo and broccoli for around $7.
“Normally around this time of year it’s half of that price,” Mr Harrison said.
“There is a shortage, they are hard to find and as a consequence, the prices go through the roof.”
However, prices are expected to ease later this year.
“Last time we spoke I would have said cauliflowers were up around $7. That’s down to about $4.50 now,” he said.
“There are some examples of prices coming down but I think you will see produce prices generally up there for the next six months.”
Extracted from 9now
