Dairy product price hike to hit Sydney CBDs
The price of dairy products is set to rise for Sydney’s CBDs as more people move to the region.
The Australian Bureau of Statistics (ABS) is forecasting that the cost of the cheapest milk, cheeses and yoghurts will increase by 12 per cent to $0.90 per litre in Sydney.
Dairy products are one of the biggest costs consumers are facing, accounting for nearly a third of all grocery bills.
In NSW, the cost to buy one bottle of milk is $2.88.
Cheeses, yoghurs and other dairy products are the most expensive, costing about $0 and $0, respectively.
Beverages are cheaper, but prices have risen as demand for these items has grown.
Diet sodas are the second cheapest of the products, costing $1.83 per packet.
Milk is the cheapest product, costing only $0 to $1 a litre.
Wholesale cheese is also cheaper than in Sydney, with a cost of $0 in NSW, compared to $2 a litres in Melbourne.
Sainsbury’s is predicting that the price of a single bottle of yoghurt will go up by 8.5 per cent, to $5.50.
Cost of milk and cheese is set at $0 per litres, while dairy products and dairy products austria, are set to increase by 7.5 to 10 per cent.
In Sydney, the price is expected to rise by 10.5 percentage points to $8.25 per litter.ABS says milk prices are expected to be highest in the south-west and south-east, and most expensive in the north-west.
Budget pressures are likely to drive up the price for milk and cheeses in Sydney and in the suburbs, but the rise in milk and dairy product prices is unlikely to cause a financial crisis, said Dr Mark Leach, chief economist at the Australian Dairy Association.
“The dairy industry is not facing a major shock, as they have had plenty of time to adjust and adjust well, which is what most consumers expect of them,” he said.
“We are seeing some price increases, but not as dramatic as we would have expected in the medium term.”