Brew-haha: should Australians be paying $5.50 or more for a cup of coffee?

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One large wholesaler says the industry is under pressure amid inflation, rising prices for beans and wages growth

A survey of Australian capital cities found the average price of a small takeaway flat white at speciality venues is $4.78 – almost half the price found in some international capitals.A survey of Australian capital cities found the average price of a small takeaway flat white at speciality venues is $4.78 – almost half the price found in some international capitals.The latest round of coffee-breathed howling started after a Melbourne roasting tsar said Australians should pay a minimum of $5.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundupthis week when he said Australians should pay $5.50 minimum for a regular flat white . He says wholesale prices for arabica coffee, the variety favoured in most Australian cafes, have almost doubled in the past five years.

Not only are roasters and cafes juggling these increased costs passed on by suppliers but they are having to cope with rising interest rates, which can put a squeeze on loan repayments or result in increased commercial rents.Felton also notes that in the past year Australian wages have grown at their fastest rate since 2009, and electricity prices remain elevated after significant inflation, but could begin to fall mid-year.

 

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