Australia Food Inflation Slows in July Despite High Meat Costs

The Australian Bureau of Statistics reported a slowdown in food inflation for July 2026, with Consumer Price Index data showing price declines across several categories. Fresh produce saw the most notable relief during the month, as fruit prices fell 1.7% and vegetable prices eased 0.1%.

Despite the monthly dip, annual data indicates that red meat remains the primary driver of food inflation. Beef prices rose 9.4% and lamb and goat prices increased 9.3% compared to the previous year. Other annual increases include milk at 4.8% and coffee and tea at 4.7%.

Some relief is visible in other annual figures, with egg prices decreasing by 1.9%. The agency's data suggests that while July provided temporary relief for consumers, strong farmgate prices for livestock continue to push retail costs higher on a yearly basis.