Chocolate prices to rise in another cost-of-living blow

Aussies have been warned chocolate prices are expected to rise. (Source: AAP)

In a fresh cost-of-living blow to Aussies, the cost of chocolate is about to skyrocket, despite prices already rising around 21 per cent this year.

The price of cocoa, the main ingredient in chocolate, is trading at its highest level, according to the International Cocoa Organisation (ICO) market report.

Prices are being pushed higher by a mixture of high demand for the sweet treat and bad weather affecting crops in West Africa.

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Prices to rise even further

There has also been a growing concern over an El Niño climatic phenomenon potentially developing later in the year that’s set to bring more bad weather and affect cocoa production further.

There are fears the knock-on effect will start to flow through to consumers throughout the year.

“With prices of other ingredients like sugar rising, and inflation causing price increases in other areas of the supply chain, confectionery companies are likely to face hurdles in their operations, and passing the cost of production increases to consumers cannot be ruled out,” the ICO report said.

Cost of food worrying Aussies

The average Australian household spends $185 a week on groceries, according to Finder’s Consumer Sentiment Tracker - up $37 a week compared to 12 months ago. This is a total cost increase of $1,924 per year.

While only around 20 per cent of households nominated groceries as a cause of financial stress a few years ago, that figure has risen steadily through the years. By March 2023, it had increased to 43 per cent, nudging ahead of the 42 per cent of Australians who cited housing costs as their most stressful expense.

This increase in grocery prices, along with housing costs, has significantly impacted Australians' financial security. The average Australian now believes their savings would last only 14-15 weeks if they lost their job - down from around 18 weeks at the beginning of 2021.

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