Prime Minister confirms food prices are rising amid flooding in Victoria

The prime minister, who visited flood-hit regions at the weekend, told ABC Melbourne on Monday that “prices will be higher as a result of the flooding”.

“Unfortunately, we expected such a good crop,” said Mr Albanese, who is traveling to the NSW town of Forbes.

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“There is no doubt that it will have an inflationary impact,” Mr Albanese said, adding that it would also have budgetary implications.

Mr Albanese said he flew over the Victorian city of Rochester with Premier Daniel Andrews on Sunday, which he said was still “largely under water”.

He said 100 Australian Defense Force troops were on the ground in flood-affected areas assisting with sand removal, evacuation and clean-up.

Mr Albanese’s comments came as Treasurer Jim Chalmers addressed the media in Canberra on Monday. Australians need to “prepare” for the cost of living implications.

The treasurer said “some of the best growing and producing areas in the country” were “severely affected”.

Mr Chalmers said the flooding was “likely to lead to an increase in the cost of living” at a time when Australians were “already under the pump”.

Also speaking on ABC radio on Monday was Farmers Federation of Victoria president Emma Germano, who confirmed to ABC Melbourne that this year’s crop was looking “like a great crop”.

“A lot of seedlings have been lost and will continue,” Ms Germano said, adding that the loss would put pressure on the supply chain in the coming months, particularly for barley and canola.

But she said if there is good drainage, “some crops will be saved.”

It would be a challenge to get heavy equipment to the site when it was a “soggy mess”, Ms Germano said.