Australians will most likely be paying more for groceries and other essential goods heading into Christmas as the pandemic wreaks havoc on retail supply chains. Economists have warned households to expect higher prices as supermarkets and other retailers start passing on large cost increases to consumers.
Growing shipping costs out of China, combined with labor shortages on local farms are making it more expensive for businesses to put essentials on their shelves, Indeed APAC economist Callam Pickering said. “Recent COVID outbreaks across Asia have really exacerbated existing supply chain issues, vastly increasing shipping costs.”
The warnings come after household budgets were squeezed in the June quarter by rises in the price of essentials like fruit, vegetables and petrol.
“It’s going to hit low-income households who spend a larger share of their income on food and beverages,” Pickering told 9news.com.au.
Earlier this week, analysts at investment bank Barrenjoey said the industry was facing the largest rise in food and grocery prices in more than a decade.
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