Australia’s food inflation eased to 3.0% in August, down from 3.2% in July, according to the Australian Bureau of Statistics.
Prices for food and non-alcoholic beverages fell 0.1% over the month in original terms and were flat on a seasonally adjusted basis. Meals out and takeaway food rose 4.1% over the year and remained the main contributor within the food group.
At a Glance: food and non-alcoholic beverage inflation was 3.0% year on year; the group fell 0.1% month on month; meals out and takeaway food rose 4.1%; and food contributed about 0.52 percentage points to annual CPI, down from about 0.55 percentage points in July.
Headline CPI rose 4.0% in the 12 months to August, up from 3.5% in July, leaving food inflation moving in the opposite direction to the wider index.
The food result gives supermarket readers a more specific signal than the national CPI headline. The food group eased over the year and declined slightly over the month, while foodservice prices continued to rise faster than the overall food category.
Regional food inflation also varied across Australia’s capital cities. Hobart recorded the highest annual increase in food and non-alcoholic beverage prices at 3.6%, followed by Brisbane and Perth at 3.3% and Sydney at 3.1%.
Melbourne recorded 2.7%, Adelaide 2.6% and Darwin 2.8%, while Canberra was lowest at 2.4%. The weighted national average was 3.0%.
For national supermarket groups, that spread shows why the same food-price environment can feel different by market. Freight, local supply conditions, category mix and promotional activity can all affect what shoppers see at the shelf.
The next Australian CPI release is due on 28 October 2026.
Editor’s Note: Based on the ABS Consumer Price Index, Australia, August 2026, released 30 September 2026.
The August data matters to grocery retailers because food inflation eased while overall inflation rose, and because the pace of food-price growth differed by city.
