Supermarket prices have risen in recent months, with food costs at Coles and Woolworths rising 9.2 percent on average in December.
According to UBS research, this is up from an average of 8.2 percent in the September quarter.
UBS evaluated over 60,000 supermarket goods and discovered that food inflation was highest in the fresh food category, up 9.6 percent, with dairy and meat increasing the most.
According to UBS data, while inflation in certain sections of the economy is beginning to slow, food and vegetables continue to rise in price.
UBS anticipates that food inflation will continue this year, with food makers and producers raising their prices until at least June.