Food prices set to rise again after cyclone

By Mozo ·

Food prices look set to rise further in Australia after Cyclone Yasi battered the north-east coast.

Banana and sugar crops were particularly hard hit after the cyclone tore through plantations in Far North Queensland.

According to news.com.au, economists believe that banana prices could now triple to as much as $15 a kilo, with the local supply expected to run out in just three weeks.

"A continuation and a probable increase in domestic food-price inflation will arise because of Yasi," CBA commodity strategist Luke Mathews told the website.

It was noted that food prices in Australia have already gone up by more than 12 per cent since the flood disaster.

Consumers concerned about their spending power could choose to compare debit cards and other money products in search of the best options. Commenting on the impact for sugar growers, Steve Greenwood, chief executive of Canegrowers, suggested the cost of the cyclone could ultimately exceed the estimated $500 million worth of damage on Queensland's cane industry.

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