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Sarah Spina-Matthews and Thomas Morgan

Darwin cops the biggest fuel, vegetable increases of any capital city, squeezing Top End household budgets

Kerry Hayman says she might have to put travel plans on hold due to the rising cost of living.  (ABC News: Dane Hirst)

Northern Territory residents are being hit harder than their interstate counterparts when it comes to soaring fresh food and fuel costs, as inflation rises at the fastest pace in more than two decades. 

Consumer prices rose 6.1 per cent for the year to June, with housing construction, furniture and fuel contributing most to the rising costs over the quarter.

"Inflation is high and rising, it will get tougher, before it gets easier," Treasurer Jim Chalmers warned yesterday.

The latest official data shows the cost of filling up at the pump rose faster in Darwin than anywhere else, with "automotive fuel" up by 6.2 per cent — well above the capital city average of 4.2 per cent.

Vegetables in Darwin also surged in price by 9 per cent — behind Sydney which rose by 7.7 per cent. It's an increase Kerry Hayman has felt acutely.

Kerry Hayman is among Darwin residents who have seen the cost of vegetables and petrol rise faster than the national average. (ABC News: Dane Hirst)

The Palmerston resident, who works in a grocery store, said when she came out of COVID-19 isolation, she noticed the prices of everyday food, including fresh fruit and vegetables, had gone up.

"There's a lot of prices I do know, and I noticed they had all changed," she said.

"It does hit the back pocket."

Why is everything so expensive?

With her weekly shop increasing from roughly $140 to nearly $200 a week, she said she might have to give up on plans to go on a road trip around the territory.

"I've bought myself a caravan which is still on its way," she said.

"And I'm thinking, by the time it gets here am I even going to be able to afford to travel anywhere?"

Overall, prices in the Northern Territory capital for everyday items rose by 2.1 per cent last quarter — the highest in the country alongside Brisbane and Adelaide.

The cost of transporting fresh food to the Top End is pushing prices even further up.  (ABC Rural: Jane McNaughton)

'We are struggling to keep up'

Peter Chandler from Foodbank NT said the increase in fresh food prices was being felt acutely by the hunger relief charity.

"It is seen right across the board but particularly with fruit and vegetables, and it's the one thing we are asked more and more to help with," Mr Chandler said.

"We are struggling to keep up and get enough fruit and vegetables."

Foodbank NT's Peter Chandler says the charity is struggling to keep up with demands for fresh fruit and vegetables.  (ABC News: Georgie Burgess)

Mr Chandler said the cost of transporting fresh food to the Top End exacerbated the cost increases being seen across the nation, which became even worse for remote parts of the territory.

"If you think it's amplified in Darwin, it's even more amplified in our remote areas," he said.

Anglicare NT CEO David Pugh called for more federal government support for not-for-profits at the frontline of the cost of living crunch, with funding allocated on need, rather than population. 

"Services in the NT are really under-resourced compared to nationally," he said.

"We have 13 times the rate of homelessness in the NT compared to the funding we get from the federal government.

"The fuel increase is such that people who have to go to remote communities to attend funerals can no longer do that and are coming to seek support."

Higher fuel prices in the NT will impact on people's way of life. (ABC News: Margaret Burin)

Fuel price legislation proposed

Northern Territory Opposition Leader Lia Finocchiaro gave notice in parliament sittings on Tuesday of the Country Liberal Party's Fuel Price Disclosure Bill 2022.

"More needs to be done to bring down those prices and bring some transparency into how retailers are charging Territorians for fuel," she told media on Tuesday.

"We know the ACCC have recommended to government that if you require retailers to disclose their profit margins, then that will then drive down the price of fuel."

Opposition leader Lia Finocchiaro says greater transparency around fuel prices will drive the prices down.  (ABC News: Che Chorley)

Fueltrac General Manager, Geoff Trotter said fuel prices in Darwin were still the highest of all the capital cities in the country.

"As we speak today, the unleaded terminal gate price in Darwin is $1.70/L for unleaded and $1.98 for diesel, so pick a service station — they're making about 32, 33c/L profit on unleaded and 34 on diesel roughly," he told ABC radio on Wednesday.

"Most other capital cities make no more than about 15c/L."

In a statement, Treasurer Eva Lawler said the government would "continue to keep a close eye on petrol prices to make sure Territorians never pay more than they should".

Ms Lawler also said the NT Government would work with the federal government to address cost of living pressures in the NT, noting existing measures such as government subsidies for childcare and power.

Treasurer Eva Lawler says the NT Government had measures in place to tackle cost of living.  (ABC News: Michael Franchi)

Mr Chandler said Foodbank was bracing for increased demand on their services in the coming months as cost of living continues to rise.

"We really can't see this going away in the near future. If anything it's going to get worse in the next little while," he said.

"We think there's a good 18 months, maybe two years, of uphill battle here before we see the light at the end of that tunnel."

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