The latest ABS inflation figures have confirmed vegetables as a cost-of-living crisis-busting super food for Australian families.

The data released yesterday shows that while overall annual CPI to July came in at 3.5 percent, vegetable retail prices actually fell 4.1 percent over the same period.

“The new inflation figures confirm that Aussie-grown vegetables remain not only one of the healthiest, but also one of the best value food options available to Australian families facing sustained cost-of-living pressures,” said AUSVEG CEO Michael Coote.

The latest data marks the second consecutive month where annual CPI for vegetables fell markedly. In the 12 months to June, annual vegetable CPI dropped 4.2 percent, compared to an increase in overall inflation of 3.8 percent.

The July data also represents the third consecutive month where CPI for vegetables fell month-to-month, despite growers continuing to face viability-threatening pressures and production cost surges linked to the Middle East conflict and years of deteriorating operating conditions and margins.

The July ABS release identifies a 4.5 percent increase for restaurant and takeaway meals ‘driven by higher operating, ingredient and other input costs (such as the minimum wage award increases on 1 July)’ as a major contributor to a 3.2 percent CPI increase in food and non-alcoholic beverage prices overall.

“While Australian vegetable growers are facing a range of similar severe operating pressures as businesses in the hospitality and food service sector, and across the economy, this has not resulted in an increase in vegetable prices – which represent increasingly excellent value for consumers,” said Mr Coote.

The latest inflation data also comes as some of Australia’s major grocery retailers this week reported surges in their profits to well over $1 billion. These healthy balance sheets highlight the importance of ensuring Australian vegetable growers – who the nation relies on to supply 98 percent of the fresh vegetables consumed here – receive returns that allow them to stay viable.

“While AUSVEG has heard of some growers’ retail customers agreeing to moderate increases in farm gate returns following the commencement of the Middle East conflict, many still report this has not been enough to cover the substantial increases in their production costs,” said Mr Coote.

“Despite the increasing value that Australian-grown vegetables represent, many growers are also reporting reduced demand, as consumers continue to face severe cost-of-living pressures.

“In the continuing consumer cost-of-living crisis, and the ongoing viability crisis for Australian vegetable growers, it is critical to increase consumption of Australian-grown vegetables, and lift returns to growers.

“Australian vegetables are one of the best value and healthiest options available to Australian families, so AUSVEG is urging all consumers to support their health and their bank balance, as well as Australian growers by eating more Aussie-grown vegetables.”