Prices for vegetables, toilet paper and hand sanitizers are rising in Australia due to the corona virus
Vegetables, toilet paper, and hand sanitizer are getting more expensive because of coronavirus – but some goods are cheaper
- The annual nominal inflation rate in Australia rose by 2.2 percent in March 2020
- Prices of vegetables rose by 9.1 percent in the first three months of the year
- By comparison, toilet paper prices rose 3.4 percent in March
- Here’s how you can help people affected by Covid-19
Prices for vegetables are skyrocketing as the coronavirus blockages force Australians to stay at home.
The Australian Bureau of Statistics has revealed that headline inflation rose 2.2 percent in March – the highest annual increase in five years.
However, fresh farm produce became significantly more expensive.
In the first three months of 2020 alone, vegetable prices rose 9.1 percent, while total prices rose 0.3 percent during the quarter.
In the first three months of 2020 alone, vegetable prices rose 9.1 percent, while general prices rose 0.3 percent in the March quarter, according to inflation data from the Australian Bureau of Statistics. Depicted is a man shopping for fresh produce at Queen Victoria Markets in Melbourne on March 26, 2020
Prices for toilet paper, on the other hand, rose by a lesser 3.4 percent, although panic purchases of the corona virus saw shelves disappear in supermarkets.
Prices for soap and hand sanitizers rose by a more moderate 2.2 percent in three months, despite fears about COVID-19 that caused demand for personal hygiene products.
ABS chief economist Bruce Hockman said the summer forest fires were to blame – not the onset of the corona virus – for the surge in vegetable prices.
“Effects caused by drought and forest fires affected the prices of a variety of foods,” he said.
Headline inflation, also known as the consumer price index, has risen to within the Reserve Bank of Australia target by two to three percent for the first time since 2018.
The CPI increased from 1.8 percent in the December quarter to 2.2 percent in the March quarter, the highest annual increase in five and a half years.
Prices for toilet paper, on the other hand, rose by a lesser 3.4 percent, although panic purchases of the corona virus saw shelves disappear in supermarkets. Pictured is a shopper in inland Sydney in Marrickville on March 21, 2020 after supplies were replenished following a wave of panic purchases
Nevertheless, the coronavirus pandemic creates a volatile situation with prices.
CORONAVIRUS CASES IN AUSTRALIA: 6,744
New South Wales: 3,016
Western Australia: 550
South Australia: 438
Australian Capital Territory: 106
Northern Territory: 28
TOTAL CASES: 6,744
The Reserve Bank of Australia expects the start of a recession in 2020 to lead to deflation, where prices fall in late June.
Ernst and Young’s economist Jo Masters agreed that Australia would experience negative inflation for the first time in nearly 60 years.
“The impact of the coronavirus will push annual inflation rates to negative territory for the first negative annual nominal CPI rate since the 1960s,” she said.
Global COVID-19 locks are making some items cheaper, with gasoline prices dropping six percent in the first three months of 2020, even before crude oil prices fell in negative territory in April.
Ms. Masters said gasoline would likely get even cheaper in the winter, with prices in most capitals now below $ 1 per liter for unleaded E10.
Global COVID-19 locks are making some items cheaper, with gasoline prices dropping six percent in the first three months of 2020, even before crude oil prices fell in negative territory in April. Shown is a price sign at a gas station in Sydney selling unleaded petrol for 87.9 cents per liter on April 22, 2020
“Fuel prices saw the biggest price drop and there is clearly more to come in the June quarterly results,” she said.
The travel ban and closing of state borders also caused accommodation prices to plummet 3.1 percent in March alone.
“Not surprisingly, the price of holidays and accommodation declined in the quarter for both domestic and international travel – in part this is seasonal, but the declines likely reflect some impact from the implementation of travel restrictions and social distance,” said Ms. Masters.
The travel ban and closing of state borders also caused accommodation prices to plummet 3.1 percent in March alone. Pictured is an almost deserted Surfers Paradise beach on the Gold Coast April 7, 2020