After having the fastest rising food prices of the developed world from 2000 to 2009, Australia is experiencing a complete 180, now boasting serious falls in food prices.
According to the Daily Telegraph, local food costs dropped 2.7 percent in the 12 months to the end of September – the biggest food price decline in the recent past, according to Organisation for Economic Co-operation and Development spokesman, Lawrence Spee.
The recent drop in prices in thanks to fruit prices normalising following the Queensland floods in 2010/2011, the Victorian floods of 2011 and Cyclone Yasi in 2011.
However other factors include the end of the drought, which has increased supply, and the strong Australian dollar, which has limited the cost of food ingredients such as wheat.
Contrary to many consumers' belief that food prices are on the rise, a Deloitte report, commissioned by Coles, found that shoppers are saving some serious coin when buying groceries.
The report cites increased competition between Coles and Woolworths and market entry from players such as Costco and Aldi as playing a role in dropped prices, and said that across the entire supermarket sector the "overall saving in food could in fact be worth $1.8 billion or more over the 18-month period" to the end of June 2012.