Australian Food Prices Rise in September

The Australian Bureau of Statistics reports that food and non-alcoholic beverage prices climbed 3.2 percent last month.

Updated on Oct. 29, 2026 in Inflation

Isometric editorial illustration of stacked wooden shipping pallets and industrial metallic canisters in a clean warehouse space. — Australian food and non-alcoholic beverage prices rose by 3.2 percent in September, driven by higher production costs across key food categories. AI Illustration. Upload story photo >

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In September 2026, food and non-alcoholic beverage inflation in Australia rose to 3.2 percent year-on-year, up from 3.0 percent in August. The broader annual inflation rate reached 4.3 percent during the same period.

Why it matters

Manufacturers continue to struggle with high production costs, including energy, freight, packaging, and ingredients. The Australian Food and Grocery Council has requested policy changes to alleviate these ongoing financial pressures on the industry.

Official statistics confirm annual food and non-alcoholic beverage inflation rose to 3.2 percent in September 2026, while the headline annual inflation rate hit 4.3 percent. This data follows a 3.0 percent food inflation reading recorded in August.

The players

Australian Bureau of Statistics

This is the national statistical agency responsible for producing official data on inflation, employment, and economic performance.

Australian Food and Grocery Council

This body acts as the leading industry association for food and grocery manufacturers, advocating for policies that support the supply chain.

The details

Price movements varied significantly across food groups, with fruit costs surging 10.2 percent and beef and veal prices rising 5.8 percent year-on-year. While dairy and milk prices increased by 3.5 and 5.4 percent respectively, pork prices declined by 1.3 percent and poultry saw only a marginal 0.4 percent inflation.

February 2026 marked the peak of beef and veal price growth at 13.5 percent.
August 2026 saw food and beverage inflation register at 3.0 percent.
September 2026 recorded annual food and beverage inflation at 3.2 percent.

Macro View

The current inflation trends are assessed relative to the standard metrics established by the Australian Bureau of Statistics Consumer Price Index methodology. This report provides an updated figure within the ongoing economic cycle tracked by these official national benchmarks.

The increase in food costs directly affects the average household monthly budget at the supermarket checkout. Consumers may notice that staple items like fresh fruit and beef remain more expensive than they were one year ago.

The takeaway

Rising costs for energy and ingredients are currently being passed on to consumers across several grocery categories. Shoppers should remain aware of shifting price trends in essential items like produce and meat when planning their weekly household expenses.