Record strength El Niño could mean bigger supermarket bills for Australians, experts warn
Summary
A very strong El Niño weather event, the worst on record, is expected to raise food prices in Australia. This could make groceries more expensive for families and challenge the Reserve Bank’s goal to reduce inflation.Key Facts
- The Bureau of Meteorology predicts El Niño will be hotter and drier than any since 1950.
- Dry and hot weather in eastern Australia is expected to affect food production and prices over the next year.
- Global food prices are rising due to weather issues and other factors, increasing risks for consumers.
- Wheat crop conditions in Australia could be affected, which will be clearer by the end of the year.
- Global wheat prices have risen about 33% since July, while prices in Australia increased by 9%.
- Rising oil prices (Brent crude over $97 a barrel) push up costs for farmers, including diesel and fertilizers.
- Russia and Ukraine’s grain exports are hindered by ongoing conflicts, affecting global grain supply.
- Over the past five years, prices for basic food items in Australia have increased around 28-30%, far more than in the previous five years.
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