Grocery prices expected to climb by 20 percent as shops pass on cost of war

There is a new and devastating blow coming for struggling households, with food prices expected to rise even further in the coming weeks.

Fresh daily foods are about to become more expensive due to the fuel crisis.

Independent supermarket Ritchies is sounding the alarm, among others.

It is expected that meat, fruit and vegetables will all be 20 percent more expensive within three weeks.

NSW Farmers bosses say members are being affected.

“Especially those that have to travel further, such as onions and lemons, which already have an additional transport charge of $1 per kilometer on the trucks that take the produce to distribution centers to reach consumers in supermarkets,” said NSW farmer president Xavier Martin.

The price of private label milk is also expected to rise, with dairy farmers asking supermarkets to increase prices by 30 cents per litre, while processors will have to pay heavily to combat major shortages of diesel and fertiliser.

As for everything else, retailers have absorbed the exploding transportation costs, but now have to pass them on to shoppers.

Some economists say a 20 percent price increase for fresh food is just the beginning and further increases are expected unless the war in the Middle East ends.

“Even if it were to end today, it will have implications for supply chains that will keep us busy for weeks and months to come,” Energy Minister Chris Bowen said.

New data from the UN shows that global wheat prices have already risen 4.3 percent in the past month, with farmers planting less due to the challenges they face.

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