Coffee has emerged as one of the strongest inflation drivers in Australia’s latest Consumer Price Index (CPI), with prices for coffee, tea and cocoa surging more than 15 per cent in the year to November 2025, according to new data from the Australian Bureau of Statistics (ABS).
The spike – driven by lower coffee-bean supply from major overseas producers – has helped push non-alcoholic beverages inflation to 4.7 per cent, well above the broader food and drink category and placing fresh cost pressure on roasters, cafés and consumers alike.
Overall, Australian household inflation eased slightly in the year to November 2025, with CPI rising 3.4 per cent – down from 3.8 per cent in the year to October – according to the latest ABS data.
The CPI measures changes in the price of a typical household “basket” of goods and services, including food, transport and housing.
The largest contributors to overall inflation during the past 12 months were housing (+5.2 per cent), food and non-alcoholic beverages (+3.3 per cent), and transport (+2.7 per cent).
Breaking this down further, non-alcoholic beverages prices increased 4.7 per cent in the 12 months to November 2025.
“The annual rise was driven by coffee, tea and cocoa (+15.3 per cent), due to lower supply of coffee beans from major overseas suppliers,” the ABS says.
A further analysis of categories relevant to café businesses shows:
- Food products prices rose 3.6 per cent in the 12 months to November 2025, driven by snacks and confectionery (+7.1 per cent) due to ongoing cocoa shortages.
- Meals out and takeaway food prices climbed 3.5 per cent, a trend largely attributed to rising wages and ingredient costs
- Meat and seafood prices increased 3.9 per cent, with beef and veal (+11.4 per cent) and lamb (+12.3 per cent) leading the gains, reflecting strong global demand for Australian red meat.
- Fruit and vegetable prices also rose 2.7 per cent, with apples and citrus recording notable increases.
