Australian café coffee prices rise at slowest rate since 2020

New data from Hey You and Westpac Data X reveals that Australian café operators are absorbing rising business costs to avoid significant menu price increases. The average price of a coffee rose by only 1.65 per cent year-on-year in June 2026 to $4.69, marking the smallest annual increase since 2020 and a rate well below broader inflation.

While overall café spending saw a 1.4 per cent year-on-year decline, the report indicates this was driven by a decrease in transaction volume rather than reduced spending per visit. Total transactions fell by 2.6 per cent, and 83 per cent of surveyed café owners reported a decline in customer visits over the past year. Demographic trends show that visit frequency decreased for all age groups under 55, with the most significant drop among those under 35, while those over 65 increased their visit frequency.

Regional variations were noted, with Queensland experiencing the fastest price increases at 7.8 per cent, while Victoria saw the slowest at 1.1 per cent. To remain competitive, operators are increasingly utilizing promotions, which saw a 90 per cent year-on-year surge in orders.