Cost-of-living squeeze intensifies — grocery inflation +2.9% YoY, price hikes, Budget CGT changes
Key Questions
What was the latest year-on-year rise in grocery prices?
Grocery prices rose 2.9% year-on-year in April, marking the biggest jump since 2023. Restaurant prices also increased amid broader food inflation.
How are major retailers responding to rising costs?
Bega and Coles have warned of cost increases exceeding 10%, with some grocery items rising 20-50%. Woolworths has frozen prices on 300 essential items to ease pressure on shoppers.
What Budget changes affect property investors?
The 2026 Budget includes reforms to negative gearing and capital gains tax that will reduce the 50% discount. Former Prime Minister Paul Keating has described the CGT changes as structurally sound.
Bega/Coles warn 10%+ costs; grocery prices rose 2.9% YoY; meat/chicken shortages/shrinkflation; rents 37%; Woolies freezes 300 essentials; Budget neg gearing/CGT overhaul hits investors. Keating backs CGT reforms.
Sources (2)
Updated May 24, 2026