Inflation figures reinforce need to tackle cost of manufacturing in Australia

28 October 2026

The Australian Food and Grocery Council (AFGC) says today’s inflation figures reinforce the need to address cost pressures facing businesses involved in making everyday essentials and Australian households alike.

New Australian Bureau of Statistics data shows annual inflation rose to 4.3 per cent in September, while food and non-alcoholic beverage prices also rose.

AFGC CEO Colm Maguire said persistent inflation was a reminder that Australia needed to tackle the costs embedded throughout the food and grocery supply chain.

“Cost-of-living pressure remains a major concern for Australian households, and manufacturers understand how important affordability is to families,” Mr Maguire said.

“Consumers are part of the same supply chain as retailers, farmers, transporters and manufacturers. We cannot separate the price Australians pay at the checkout from the cost of making and moving those products.

“Food and grocery manufacturers continue to face significant pressure from energy, freight, packaging, ingredients and regulatory costs. When costs rise across the supply chain, those pressures cannot simply be absorbed indefinitely by one party alone.

Australia’s food and grocery manufacturing sector recorded $182.6 billion in turnover in 2024-25, employed more than 301,000 people and invested $4.5 billion.

Mr Maguire said Australia should use the renewed focus on inflation to look at the conditions facing businesses producing essential goods.

“Reducing the cost of doing business is part of reducing the cost of living. We need policies that make Australia an attractive place to invest, improve productivity and keep making food and grocery products.

“A strong domestic manufacturing sector matters for jobs, investment and Australia’s long-term food and grocery security.”

Contact

Zandi Shabalala

media@afgc.org.au

0430 051 575