Chef warns Aussies: Brace for $12 coffees

Renowned chef Neil Perry has forecast a dramatic increase in Australian coffee prices, predicting cups could soon cost $12. He stated this grim outlook at Australia's Global Food Forum, attributing the rise to increasing award wages and post-pandemic inflation.

Perry highlighted that energy-led inflationary pressures on logistics and production, influenced by the situation in the Middle East, are significant factors. He cautioned that consumers might cease dining out if value for money diminishes, emphasizing the importance of customer loyalty during tough economic times.

The average coffee price in Australia currently stands at $5.50, a $1.50 increase from pre-Covid figures. Reports indicate some cafes have already charged upwards of $10.80 for specialty drinks, with additional costs for non-dairy milk alternatives.

Experts also warn that flat whites and lattes could reach $12 within three years due to escalating bean, milk, and operational expenses. Global coffee bean prices have hit a 47-year high, driven by extreme weather in major coffee-growing regions like Brazil and Vietnam. Furthermore, a key Australian coffee supplier has experienced a nine percent rise in its wage bill, and wholesale coffee prices have surged by 119 percent since November 2023.