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Aussie food prices 'falling fastest in world'

Reported by Alex Pleffer, ninemsn
Monday, January 7, 2013
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Despite persistent complaints about the ever-increasing cost of living, Australia now has the developed world's fastest falling food prices, according to new research.

Food costs dropped 2.7 percent in the 12 months leading up to September, analysis of OECD data has found.

The falling prices are a dramatic turnaround after Australians suffered the fastest-rising food prices of the world's developed nations between 2000 and 2009.

The change could be attributed to fruit prices, which recently normalised after surging prices due to natural disasters in Queensland and Victoria.

But broader trends also contributed to the drop, with Australian food prices remaining contained compared to countries such as New Zealand, the UK and the US since the end of 2009.

University of Queensland economics professor John Quiggin said the reversal in prices was partly due to increased supply at the end of the drought and the strong Australian dollar.

"The appreciation of the dollar pushes down the prices of commodities, which pushes down the price for Australian consumers," Professor Quiggin said.

Source: Courier Mail, Nine Network

24/10/2014 06:53Sydney, Australia. 24 October,2014
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