Rising food prices are a constant concern for households in Australia and other parts of the world. And in 2025, Australia is projected to continue facing shifting grocery costs by the quarter.
With selected food and grocery costs chipping away at a greater percentage of the household income reserves, homeowners and parents need to be more strategic and mindful of their spending to stay on top of their resources.
Moreover, the trends in the food industry are rapidly evolving, with some industries bearing the brunt of this inflationary market while others remain steady and capable of riding this wave.
If you want to see the real impact of food inflation in a comprehensive light, you’re in the right place.
This article will reveal some of the winners and losers of the present-day food inflation the world is experiencing. We’ll also speculate what may come next following present developments in the business and other adjacent industries.
Let’s jump right into it.
Winners of the Food Inflation
Australia’s inflation is slowly easing this year from 2024’s tumultuous highs, but it’s still not exactly at reasonable levels.
Furthermore, the general trend of food inflation in Australia is showing a decrease from the first quarter of 2025 to the second quarter, marking good news for the average consumer.
While specific information on the winners and losers of the most recent quarter’s food inflation data is limited, the quarter before that has some derivable data. Furthermore, it’s expected that much of the inflationary challenge faced in the latter half of 2024 has already sizzled and passed.
Some Australian products that have experienced a significant decrease in price over the past quarter include the following:
- Cheese: The price of cheese products in Australia has fallen by an average of 1.8% in 2025. It’s the biggest drop in terms of price change in the country as local dairy farms remain strong and resilient to outward economic pressures.
- Ice cream and dairy products: Similarly, dairy-based products like ice cream have also eased in terms of pricing, falling by about 1.3% from Q4 2024’s highs.
- Milk: The primary component of the aforementioned goods also enjoys a slight drop in price, in particular, a 0.8% decline from Q4 highs.
- Fish and seafood: The price of fish and other kinds of seafood like shellfish, oysters, crabs, and shrimp decreased at the turn of the new year, dropping by 0.8% from last quarter’s prices.
- Other meats: The price of meat types that don’t fall under the category of beef, lamb, pork, and poultry has also decreased slightly. These meats include domestic game meats such as rabbit and kangaroo.
As seen above, a noticeable trend is that many of these food items are supplied within the country’s own territory and farmland. This is important to note, as it signifies a trend that global trade and imports have become impacted in the early quarters of 2025 for the average Australian consumer.
Losers of the Food Inflation
Of course, not all food categories fared well in the global food inflation crisis of recent months. Many staples have been hit fairly hard due to a combination of various factors like increased logistics costs and unfavourable climate conditions affecting supply.
Some Australian food products that have increased in cost and become less affordable at the start of 2025 include the following:
- Lamb and goat: The price of lamb and goat has skyrocketed by 17.3%. This is because of its generally low base in 2023, coupled with increased costs of cattle rearing.
- Bread and cereals: These processed food items have increased in price by 2.5%.
- Oils: Vegetable cooking oil continues to soar, netting a 7.5% increase from the previous quarter.
- Eggs: Eggs have also become more expensive as supply dwindles and the effects of avian influenza continue to ravage poultry farms. This impacts both a global and local context, with egg prices increasing by 11.2%.
- Fruits and vegetables: Produce has been increasing in price pretty consistently as well, with vegetables gaining a 5.7% average increase and fruits gaining a 7% average increase.
- Pork: This food category jumped by 2.5%.
- Poultry: Chicken products have jumped by 2.6% over the last quarter.
- Snacks and confectionery: Snacks have also increased by 3.6% over the past quarter.
The price increase of each food category can be explained through different lenses, with some being primarily caused by increased production costs while others facing increased distribution and packaging costs.
Another potential contributor to rising costs in the future is the turbulent geopolitical landscape for key trading partners like the United States, with their overseas tariff policy potentially raising the costs of US-based manufactured goods.
In any case, average food prices are running higher than the 10-year average—noting a potential food insecurity issue on the horizon for Australian citizens with a low to medium-sized income.
Looking to the Future: How to Power Through The Food Inflation Issue in Australia
While food inflation is expected to come down for the next quarter, its pressures are still felt for most Aussie households.
Moreover, price dips are never a guaranteed trend in the coming years. Many factors, such as a fragile global supply chain, an ongoing climate change crisis affecting crop viability, the potential for economic and political instability, and rising fuel and electricity costs, may contribute to price pressure in the long run.
As such, it’s essential to come up with a strategy and remain resourceful with how you buy and plan your meals. Here’s how the everyday Australian household can prepare themselves to navigate rising food costs.
1. Prioritise Local Businesses
Food costs aren’t only expensive for customers, but they’re also expensive to manufacture and place on the grocery aisles.
Many food manufacturers and producers pass the rising costs on to their customers. This is especially true for overseas businesses, as they have to contend with the cost of distributing and supplying Australians with their products from an overseas base.
These additional logistics costs add up and eat away at their profit margins, causing them to increase the price. If you want to avoid this price increase, then consider choosing local suppliers in local farmers’ markets or discounted grocery chains instead.
This way, you can get a cheaper deal for fruits, vegetables, and other natural ingredients without shouldering a high cost.
2. Refrain from Eating Out
With a wide range of food products becoming naturally more expensive due to the food crisis, dining establishments must also adjust the price of their menus to account for this cost increase.
This means that for everyday consumers, eating at a restaurant or a diner is expected to become more expensive. Even grabbing coffee every day from a local cafe can add up, costing you thousands of dollars in a year.
If you want to keep your finances intact, consider cooking and eating all your meals at home. You’ll save more money that way. If you’re too busy to cook, then you should consider using affordable meal plan services like FoodSt to deliver a balanced meal to your doorstep at your convenience.
3. Minimise Food Waste
With certain food items like eggs experiencing a short supply, it’s essential to store food items properly to prevent the risk of spoilage. Freeze excess dishes, reheat and get creative with your leftovers, and ensure you don’t get more than you need.
By doing this, you can stretch your budget and play a part in effectively utilising scarce resources in the country.
4. Watch Out For Sales and Specials
Some groceries and markets discount items that are slow-moving or about to spoil. Take advantage of these discounts and sales to save a few extra bucks every time you head out to the supermarket.
Ideally, you should already have these items on your to-buy list and not simply buy them on a whim. This way, you can manage your expenses more strategically and not simply reduce your financial allocation on actual household essentials.
We hope this article has helped inform you about the ongoing food crisis in Australia. Best of luck in riding it out!