Grocery prices to rise due to floods

GROCERY prices will soar in the wake of devastating floods across Australia, driving up inflation and putting further pressure on already stretched household budgets.

Treasurer Jim Chalmers has warned Australians to prepare for an ongoing cost of living impact from the flooding in Victoria, NSW and Tasmania, which has significantly affected agriculture production.

“This is a human tragedy first and foremost, but it has obvious consequences as well for the economy and for the budget,” he said.

“We need to brace ourselves for the impact of these natural disasters on the cost of living.”

Mr Chalmers said Australians would soon notice grocery prices increasing.

“When you’re talking about absolutely prime agricultural land, making some of the biggest contributions to our grocery aisles, there will be an impact, and it will be a substantial impact I fear,” he said.

Mr Chalmers said it was too early to put a dollar figure on the clean up and recovery cost of the flooding disasters, but said it would impact future budgets.

“The full costs and consequences of these natural disasters will be known in time,” he said.

“It’s premature now, to try and put a number on the size of the impact or the shape of it, and the duration of the impactof these natural disasters.”

Prime Minister Anthony Albanese, who visited Forbes to see the flood damage first hand on Monday, said a variety of groceries would go up.

“Tragically there had been such a good harvest anticipated in wheat, fruit and vegetables, so many products … areas like poultry will be affected as well,” he said.

“There’s no doubt there will be an impact on this and the impact will feed into higher prices, most unfortunately at a time when inflation has already been rising,” he said.