Russia and Ukraine conflict causes inflation in supermarket prices

11 April 2022

Written by: Grace Tan

Red meat and wheat to remain at soaring high prices this year

Striking inflation to hit Australia’s supermarkets this year with many staple foods set to increase in price due to the conflict between major food exporters Russia and Ukraine.

CEO of Woolworths, Brad Banducci said that supermarkets will be affected by an “industry-wide” cost increase throughout this year, according to Global Times.

“The most expensive thing that has happened to us is red meat. Both beef and lamb have become incredibly expensive and we all notice that. They become almost a bit of a luxury item,” he said.

Beef and veal are set to remain high throughout the outlook period due to low numbers of herds despite high rainfall which has led to greater pasture availability and widespread restocking.

Among all staple foods, wheat is set to remain high with the gross value of its production set to reach $13.2 billion, according to the Department of Agriculture, Water and the Environment.

This was due to wet harvests seen in parts of southern Queensland and the majority of New South Wales, causing a high proportion of wheat crops to be downgraded to low protein and feed grade wheats.

Dairy lovers are also met with bad news, as constrained global milk supply and strong global demand are causing seasonal milk prices to hit 58 percent in 2021-22 and remain high throughout the year causing milk production to regularly decline due to a lack of cow herds.

The inflation has also caused Australian fuel prices to surge as well as higher feed and fertiliser costs.

With the recent devastating floods that have occurred, it added another major issue to the list with problems in the transport and logistics of the products.


Photo: Shopping cart moving through isle of market by Marco Verch available HERE and used under a Creative Commons licence. The photo has not been modified.