Australian food inflation price falling, but slowly
© Reuters. FILE PHOTO: A buyer reaches for a receive of garlic, that’s imported from China, next to a container of Asian shallots from Australia at a fruit and vegetable shop in Sydney, Australia, June 6, 2016. REUTERS/David Grey
SYDNEY (Reuters) – Australia’s top grocer said on Tuesday that while the food inflation price became starting up to decline, costs were taking longer than expected to retreat off pandemic highs.
Woolworths Neighborhood Ltd Chief Govt Officer Brad Banducci said while impress rises were slowing for certain products, with vegetables now “deflationary”, costs in heaps of locations were falling extra slowly or indubitably now not.
“We have faith considered food inflation in aggregate reach down but powerful extra slowly than somebody anticipated,” Banducci said at the Australian Monetary Overview alternate summit on Tuesday in Sydney.
Meals inflation rose 9.2% in the December quarter versus a year ago, the perfect reading since 2006. Vegetable costs rose 5.7% over the similar interval, down from a 17.2% reading in the September quarter.
Stubborn inflation has posed a arena for the Reserve Monetary institution of Australia, which on Tuesday lifted its money price to its best stage in bigger than a decade. Then again the central bank urged it’d be almost done tightening as person spending became slowing.
Falling freight rates would reduction lower costs, said Banducci, adding that Woolworths had correct negotiated fresh freight agreements.