On Wednesday,major dairy and drinks manufacturer Bega warned shareholders its full-year costs related to the pandemic would be higher than initially expected,exceeding $40 million,pointing to delays in China and the Russia-Ukraine war as key reasons.
“There have been increases in input costs associated with the outbreak of war in Ukraine and now also concern on the certainty of deliveries of products destined to the China market scheduled through the port of Shanghai due to lockdowns in that city,” the company said.
Costs have been rising steadily across the market,with Woolworths boss Brad Banducci warning earlier this year thatinflation was “live and real” and that price rises of 2 to 3 per cent could start to flow through to the supermarket shelf.
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On Wednesday,veteran retail analyst Craig Woolford reinforced those warnings,tellingThe Age andThe Sydney Morning Herald he expected prices would consistently rise through the rest of the year.
“We expect[inflation] to sequentially increase,roughly a percentage point of extra inflation coming through over each quarter for the rest of the calendar year,” he said. “This will affect the cost of food and a lot of non-food items like appliances,hardware and sporting goods.”
“Inflation was already building up steam late last calendar year,and now we’ve got additional pressures from the Russia-Ukraine war and the supply chain strains that are happening in China.”