The proof inflation is out of control in Australia: Outrage over the cost of tiny sausage roll

A photo of the bite-sized sausage roll that an Australian had to pay $9 for has left Australians furious over ‘shrinkflation’.

The disappointed buyer said they bought the sausage roll at a cafe in Cairns, north Queensland, before seeing its size on Wednesday.

“I’m really feeling the shrinkflation here,” they said.

A photo of the sausage roll, which was larger than a napkin, quickly caught the attention of Australians outraged that they regularly pay more for less food.

One wrote: ‘$8+$1 for sauce. As un-Australian as it gets.”

Another said: ‘Seriously, nine dollars is ridiculous.’

However, not everyone sympathized with some Australians reminding frustrated customers that the cafe is likely to face higher operating costs.

“Well, next time don’t buy it,” one person wrote.

“Small businesses have to pay bills too, you know.

“Because everything goes up in price, in order to make money, these companies have to raise their prices as well.”

Others accused customers of being too willing to pay high prices.

‘Every day it’s a similar post. “I can’t believe a pie costs twelve dollars these days!” They ask because idiots pay for it,” one person commented.

“Yes, but you bought it, didn’t you? They taught us how this works in high school,” wrote another.

New data from the Australian Bureau of Statistics shows the consumer price index for August was 5.2 per cent year-on-year, up from 4.9 per cent in July.

The indicator tracks the cost of purchasing the same package of goods and services over time.

The final result was in line with the market consensus forecast of 5.2 percent.

ABS head of price statistics Michelle Marquardt said inflation was still moderating as volatile items such as fuel, fruit and vegetables and travel were eradicated.

“If these volatile items are excluded from the monthly CPI indicator, the annual increase of 5.5 percent in August is lower than the annual increase of 5.8 percent in July,” she said on Wednesday.

Housing, transportation, food and insurance were the biggest drivers of the annual increase.

House prices continue to moderate, with new home prices posting their weakest annual increase since August 2021 as the cost of building materials declines.

However, rents continued to rise to reflect the tight market, from 7.6 percent through July to 7.8 percent in the 12 months to August.

Higher fuel prices were widely expected to result in stronger overall results.

Car fuel prices rose 13.9 percent compared to 12 months ago, up from 9.1 percent in August.

Annual fuel prices have been particularly volatile recently, the ABS noted.

“The price increases this month, combined with base effects, resulted in the annual movement for auto fuels rising 13.9 percent in August, compared to a decline of 7.6 percent in July,” Ms. Marquardt said.

Electricity prices rose by 12.7 percent annually and gas prices by 12.9 percent to reflect wholesale prices, although the ABS again said energy bill relief softened the blow.

Food and non-alcoholic drinks also fell further, rising 4.4 per cent in the 12 months to August, compared with an annual increase of 5.6 per cent in July.

New data from the Australian Bureau of Statistics shows the consumer price index for August is at 5.2 per cent year-on-year, up from 4.9 per cent in July

However, there was a lot of variation between different grocery products: prices for fruit and vegetables fell after improved growing conditions, but prices for bread, dairy and grain products rose.

The monthly inflation outcome will play a role in the Reserve Bank’s interest rate decision, with more rate hikes planned if data shows price pressures persist.

However, more emphasis is usually placed on the quarterly figures, which are due at the end of next month – after the cash rate call in September.