Food Prices Spiked Well Before Floods

The Telegraph

FRUIT prices rose 15.5 per cent and vegetables 11.4 per cent in the three months to December - and that was before the floods that devastated the food-producing regions of southeastern Australia.

Federal Treasurer Wayne Swan yesterday warned shoppers to brace for even more increases in prices.

"The impact of these disastrous floods in Queensland through January will be felt by Australian families at the checkout because of the impact, particularly, on fruit and vegetable prices," Mr Swan said

The figures came as food giant Coles slashed the price of milk by up to a dollar, signalling the start of a supermarket milk price war.

rival Woolworths indicated it would follow suit, matching Coles' milk prices from today.

Coles Brand two-litre Lite fresh milk will drop in price from $2.99 to $2, while Smart Buy two-litre full cream fresh milk will fall from $2.09 to $2.

Coles merchandise director John Durkan said the changes came as part of its "Down Down" campaign to reduce the price of products their customers bought the most.

Consumer group Choice spokesman Christopher Zinn welcomed the "dramatic decrease" as long as it did not mean farmers were being "screwed over".
For full article click here