Rabobank: Food inflation slows in CPI’s June 2023 quarter
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Rabobank commentary: Food inflation slows in CPI’s June 2023 quarter

The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics, released today, shows food inflation slowing in the June quarter.

Rabobank senior food retail analyst Michael Harvey said “Food inflation is at 1.6 per cent for March to June (unchanged from the last quarter), and 7.5 per cent year-on-year – slowing down from last quarter at 8 per cent”.

Mr Harvey said high input/production costs are still fuelling food inflation – both for restaurants and grocery shopping.

“Restaurant meals inflation has slowed down in the last quarter to 6.5 per cent, down from seven per cent previously,” he said.

“Effects of wet weather are still playing a part in food and vegetable inflation,” Mr Harvey said, “with reduced supply for some fruit and vegetables, however, this is also being balanced out by good weather conditions in some growing regions leading to abundant supply of certain vegetables like, capsicums and avocados.”

Mr Harvey said snacks and confectionary inflation has increased from March year-on-year figures, “This is driven by increased costs of production and price rallies in inputs, like sugar and cocoa. While food inflation is on the decline, consumer’s favourite indulgence categories – ice cream, snacks and confectionary – have seen increased inflation.

“Most other food categories have seen inflation rates decrease, which shows we are well passed the food inflation peak, but still well above long term averages.

“It still remains a challenging market for consumers as inflation rates for many categories still remain in double digits and there remains a clear trend towards value as households look to tighten spending,” Mr Harvey said.

“For many categories we are at the later stages of the inflationary cycle, but the outlook for the rest of the year will remain dependant on growing conditions in Australia – considering risks such as El Nino – as well as global commodity markets.”

Food inflation slows in CPI’s June 2023 quarter

For further information or interviews with Michael Harvey, please contact Will Banks (details below) or Denise Shaw on 02 8115 2744 or 0439 603 525.


Rabobank Australia & New Zealand Group is a part of the international Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has more than 120 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank is structured as a cooperative and operates in 38 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1000 offices and branches. Rabobank Australia & New Zealand Group is one of Australasia’s leading agricultural lenders and a significant provider of business and corporate banking and financial services to the region’s food and agribusiness sector. The bank has 90 branches throughout Australia and New Zealand.

Media contacts:

Will Banks
Media Relations Manager
Rabobank Australia
Phone: 0418 216 103
Email: will.banks@rabobank.com