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Beer, Chicken, Bread Prices Could Rise

The cost of bread, chicken and beer is expected to rise as Australia suffers through drought, the boss of the National Farmers Federation says.

"Anything to do with grain is in the firing line. There is very, very little grain on the eastern seaboard at the moment. We are bringing it around from the west already so that is adding significant cost. If grain is short ... the cost is going to go up too," President Fiona Simson told 3AW radio on Monday.

The price of chickens could also go up as they eat grain, while beer drinkers could be hit with sorghum and barley in shorter supply, she added.

"You would expect when the price does go up for the price of the raw product you would expect to see a corresponding price increase in the markets," Ms Simson said.

AAP

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