Australia probes soaring food prices

0 Comments | AFP, February, 2008

SYDNEY (AFP) — Australia's government has taken aim at food prices as it targets rising inflation, launching a national inquiry to try to stem price rises close to double figures for some staple items.

But grocers have warned that a long-running drought, strong export demand and global grain shortages mean Australian consumers will inevitably pay more at the checkout.

Grocers say they are as much victims of the economic situation as their customers, with costs going up all along the supply chain as the drought hits production and high oil prices push up freight rates.

They have welcomed the inquiry as likely to improve transparency about costs.

Farmers say that ultimately it is buoyant foreign demand for Australia's high-quality produce that is to...