Coffee prices jump 50 cents as RBA surcharge ban backfires
About 17 per cent of cafes raised prices after the RBA surcharge ban, averaging 50 cents per coffee.
A Reserve Bank ban on card surcharges has backfired, with nearly one in six cafes lifting their prices instead of lowering them. The typical increase is 50 cents, or almost 10 per cent of a coffee's price, far higher than the 0.5 to 1.5 per cent surcharge customers previously paid.
The ban took effect on 1 October and was meant to reduce costs for small businesses and shoppers. The data comes from Small Flat White, which tracks prices across more than 1,500 Australian cafes.
Some businesses are absorbing the cost for now, but restaurant owners warn they will eventually have to pass rises on to customers. The RBA believed about 16 per cent of businesses were surcharging and expected minimal impact on prices.
- 17 per cent
- Cafes that raised prices
- 50 cents
- Average coffee price increase
- 1 October
- Ban effective date
- 1,500 plus
- Cafes tracked by Small Flat White
Why it mattersAustralians expecting lower coffee prices after the surcharge ban are instead paying more, directly hitting household budgets.
AustraliaCoffee lovers across Australia are paying significantly more at many cafes despite the RBA's intention to ease costs for small business and consumers.
Corroborated bysmartcompany.com.au
✓ Claims checked against the source. checked 3 h ago
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