Australia’s inflation remained stubbornly high in January 2026, coming in slightly hotter than

economists had expected and reinforcing the likelihood of further interest rate pressure.

Headline inflation held steady at 3.8% annually, unchanged from December, but the more

important underlying (trimmed mean) inflation rose to 3.4% up from 3.3% in December.

The result surprised economists, who had anticipated a modest easing in price growth. Instead,

persistent inflation suggests price pressures are proving more entrenched than hoped.

Housing was the largest driver of inflation, rising 6.8% over the year, followed by increases in

food and beverages (+3.1%) and recreation (+3.7%). These categories highlight the ongoing

cost-of-living pressure on households, particularly across essentials.

The data comes just weeks after the RBA lifted interest rates and some economists have

nominated May as the month the next interest rate rise will occur.

What does this mean for the berry category?

Prices continuing to increase will drive budget conscious customers towards seeking value and

we are likely to see continued cross shopping at multiple retailers to get the best discounts and

an increase in shopping frequency at Aldi and Costco given the lower prices and bulk buy deals

they have on offer. Overall for the supermarket sector continues to grow as households look to

cooking and entertaining at home and this trend lends well to Berries in elevating desserts and

platters and as a treat.