Food is fastest rising expense

While retailers are discounting discretionary purchases such as women's footwear and washing machines in a bid to drive demand, the price of items we can't live without - fruit, fish, beef and bread - have soared ever higher.

Food prices are up 4.7 per cent on a year ago, according to Australian Bureau of Statistics data. Other goods and services have barely increased, rising 0.6 per cent.

An analysis of ABS data reveals the cost of food has nearly doubled between generations - feeding a Sydney family costs 94.6 per cent more than 20 years ago.

By comparison, other costs - such as power, furniture and childcare - are up only 71.7 per cent.

The foods with the greatest price rises over the past two decades are lamb, up 158.2 per cent; bread, up 145.8 per cent; milk, up 121.1 per cent; and eggs, up 108.8 per cent.

Chicken and vegetables are the only staples to remain in check - up 8.3 per cent and 29.6 per cent.

Just as lamb racked up the biggest increase over 20 years, it has recorded the steepest rise this past year, up 9.4 per cent. Seafood has soared 7.9 per cent, pork has put on 7.7 per cent and fruit is 7.5 per cent more expensive.

By comparison, household appliances are down 2.7 per cent, while women's footwear has become 6.3 per cent cheaper.

Meanwhile, supermarkets and suppliers play a blame game.

A Coles spokesman said: "Coles is not ripping off farmers or customers - if that is occurring, it is happening in other parts of the food supply chain."

Woolworths CEO Michael Luscombe said questions about food inflation were best answered by multinationals which "dominate" food supply in Australia.

The body which represents makers, the Australian Food and Grocery Council, responded that Mr Luscombe was diverting blame.

"It's a bit rich for Woolworths to target food manufacturers while the supermarket giant generated bumper sales growth of 7.5 per cent for the year to June 30," AFGC's head Kate Carnell said.