Here’s why your breakfast costs 71% more
The price of everyday items is soaring. Here's why it'll cost 71% more just to eat breakfast.
A combination of the war in Ukraine, global supply shortages and bad weather is driving the price of soft commodities up, meaning you are paying 71% more for a typical breakfast, a new report shows.
eToro's breakfast commodity index shows that the spot price on 9 typical breakfast goods – wheat, sugar, cocoa, oats, pork, orange juice, coffee, milk and tea, has skyrocketed in the last 2 years.
eToro's global market analyst Ben Laidler says the price rises are due to input costs everywhere going up.
"Commodity prices have been rising across the board since the COVID pandemic thanks to global supply chain chaos. The war in Ukraine has only exacerbated this," he said.
"Add this to poor weather impacting a number of crops in the last year and you have a perfect storm of factors making the food on your breakfast table far more expensive to source and supply for food companies."
Consumers aren't necessarily paying more just at the checkout.
"Much of these price increases are already being passed on to consumers, through higher prices or smaller 'shrinkflation' sizings," Laidler continues.
What is the most impacted?
While soft commodities as a whole continue to rise, they are going up by different amounts, meaning what you pay will vary depending on your personal taste.
Based on eToro's data, orange juice is having the steepest rise, with the commodity jumping 124% in the last 2 years. This is off the back of bad weather and disease impacting US farmers.
At the same time, the price of coffee is up 94%, while pork costs 80% more.
The most modest gains were in cocoa, but even that will still set you back an additional 7%.
|Commodity||Base = 100 July 2020||Indexed price January 2021||Indexed price July 2021||Indexed price January 2022||Indexed price July 2022|
|eToro breakfast commodity index||100||117||133||159||171|
Spot prices taken in the first week of July and January every 6 months for the previous 2 years.
How can you avoid surging prices
If you're feeling the pinch from rising food inflation, you're not alone. Finder research shows that over a third of Aussies put it as 1 of their top 3 most stressful experiences.
According to the latest figures, the average Australian household spends $155 per week on groceries. Those who live outside of the cities are likely paying even more.
But as Finder's senior editor of money Sarah Megginson says, shoppers should hunt around for the best deals possible.
"There are certain things I never pay full price for, such as laundry detergent, toothpaste, toiletries and dishwashing detergent," she says.
"I have no brand loyalty so I'll buy whichever brand is half price, and I stock up with a few when they're on sale."
Megginson also notes the importance of online shopping to find a better deal.
"Doing your grocery shopping online reduces the temptation to impulse buy, but if you still like to browse the aisles in person (like me), you can save money by consistently shopping for essentials on sale," she concludes.
To see the full list of 20 ways to save on your groceries, click here.