Mr Donald, who sells everything from organic shampoo to honey, said his suppliers were telling him that the range of products was tightening due to lack of rain.

“Our honey suppliers say that because of the lack of rain the trees aren’t flowering which means the bees don’t have anything to make honey so I think the price will go up.”

Australian Food and Grocery Council chief executive Tanya Barden said while the latest inflation readings for food and grocery products were modestly higher they do follow seven years of retail price deflation in the sector.

“This is despite significant increases in the cost of manufacturing through rises in energy prices, regulatory costs, and the impacts of the drought,” Ms Barden said.

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