Food Prices Rise 3.2% as Inflation Hits 4.3%

Australian food and non-alcoholic beverage prices climbed 3.2 per cent year-on-year in September 2026, while headline inflation reached 4.3 per cent.

Updated on Nov. 10, 2026 in Inflation

Food Prices Rise 3.2% as Inflation Hits 4.3%

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Australia's headline inflation rose to 4.3 per cent in the 12 months to September 2026, up from 4.0 per cent in August. Food and non-alcoholic beverage prices grew 3.2 per cent over the same period, with beef and veal prices up 5.8 per cent.

Why it matters

Household budgets remain under pressure, prompting consumers to switch protein products and seek better value. Restaurant and foodservice businesses are contending with higher labour, occupancy, energy and ingredient costs.

The Australian Bureau of Statistics Consumer Price Index shows headline inflation at 4.3 per cent for the year to September 2026, against 4.0 per cent in August. Beef and veal inflation has eased from a 13.5 per cent peak in February, while pork prices fell 1.3 per cent, a second consecutive monthly decline.

The players

Australian Bureau of Statistics

The Australian Bureau of Statistics is the national statistical agency responsible for compiling the Consumer Price Index that tracks inflation across Australia.

Woolworths

Woolworths is one of Australia's largest supermarket chains, and its trading results are widely watched as an indicator of grocery spending and pricing.

The details

Food and non-alcoholic beverage prices rose 3.2 per cent in September, with dairy up 3.5 per cent, liquid milk up 5.4 per cent and fruit up 10.2 per cent. Poultry inflation was 0.4 per cent. Woolworths reported Australian food comparable sales growth of 6.1 per cent, supported by volume, while average prices fell 0.7 per cent.

February 2026: Beef and veal price inflation peaked at 13.5 per cent.
August 2026: Headline inflation was 4.0 per cent and food inflation 3.0 per cent.
September 2026: Headline inflation rose to 4.3 per cent and food prices to 3.2 per cent.
Late October 2026: The ANZ-Roy Morgan Consumer Confidence index stood at 67.9.

Inflation Trajectory

The rise to 4.3 per cent extends the Consumer Price Index series published by the Australian Bureau of Statistics, reversing the easing seen in August. Beef inflation has cooled from its 13.5 per cent February peak, yet food prices continue to climb, showing that pressure is shifting across categories rather than disappearing.

Grocery bills are rising, with food and non-alcoholic beverage prices up 3.2 per cent over the year to September. Shoppers are switching protein purchases and looking for better value as budgets tighten.

The takeaway

Comparing unit prices and considering alternative proteins can help stretch a household budget while food inflation remains above its long-run level. Watching monthly CPI releases can also help households anticipate further price movements.