Prices dropping in a supermarket

Let the deflation begin

Monthly Food Inflation Update – February 2025

The February 2025 consumer price figures for food categories reported shows some price deflation creeping into the grocery bill. On a monthly basis we have seen the Bread & Cereal category drop the most, with a 1.2% price fall noted. Dairy is down by 0.7% during February, meanwhile Fruit & Vegetable price levels are 0.5% softer. Unfortunately for the drinkers, alcohol is still under an inflationary trend with price gains of 1.0% reported.

On the annual basis average prices from 2024 to 2025 show that all categories are below the upper CPI banding the Reserve Bank looks at when deciding upon interest rate movements (the RBA guideline is between 2% to 3% that they aim to keep CPI between). Annually Dairy is the only category to see very mild deflation on an annual basis with the remaining categories sitting between 1.4% to 2.4% price increases from levels seen in 2024.

Monthly Food Inflation Indicator (Change to Indicator from January 2025 to February 2025)
Food Inflation (Change to Indicator from 2024 to 2025)

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