Australians’ barista coffee habit is costing us up to $2000 a year, according to new research, which has also revealed a surprising finding about spending habits across the states.

With another interest rate hike this week causing mortgage pain for many homeowners and inflation continuing to rise, the Compare the Market study shows just how much a seemingly small daily outlay can add to cost-of-living pressures.

It found that the average cost of a single-serve coffee or other hot beverage across Australia was $5.42 a month.

That means if you have one every day, you’ll be forking out $37.94 a week or $164.40 a month.

Compare the Market’s Sarah Orr said while many Australians were happy to pay top dollar for the perfect brew, the daily habit could “quietly snowball into a major annual expense”.

“A takeaway coffee every day could cost almost $2000 a year,” Orr said.

“That’s around the price of a return economy ticket to Europe. Suddenly that morning flat white starts looking a lot more expensive.”

Wholesale coffee prices surged last year, with the change largely blamed on extreme heat and changing rainfall patterns in coffee-producing countries affecting bean yields and quality.

Australian Bureau of Statistics data showed that coffee, tea and cocoa prices rose more than 15 per cent in the 12 months to August 2025, and although increases have slowed in more recent  times, it’s not uncommon to pay more than $6 in larger cities.

The research ­– based on a nationally representative survey of 3078 adults –  found that Australians aged 24 to 34 had the highest-average coffee spend, followed by those aged 18 to 24 and then people close to or beyond retirement age.

Although Melbourne is often considered the country’s coffee capital, Victoria had the lowest average takeaway coffee spend of any mainland state, at $4.37 a month. NSW had the highest, at $5.74.

“You could argue that Victorians have managed to achieve the holy grail of coffee culture: Great coffee without the highest price tag,” Orr said.

“The popularity of smaller, high-impact orders like piccolos might explain this.”

Source: Compare the Market

In separate insights released in August by Hey You and Westpac DataX, the Daily Brew Report 2026 put the national average cost of a cup of coffee much lower, at $4.69. It found Tasmanians were paying the most for their daily caffeine, while prices were rising the fastest in Queensland.

Overall, the average price of a cup of coffee rose 1.65 per cent in the past year, according to the report, indicating that price increase have indeed slowed overall.

However, some café owners have indicated that the ban on card surcharges – which came into effect on October 1 – will put further pressure on prices.

“We understand why customers dislike surcharges,” one Sydney café owner told Nine News.

“But with cafés operating on tight margins, many will simply need to include those costs in menu prices to keep serving great coffee, food, and experiences.”

Takeaway coffee prices vary greatly across the country. Photo: Pexels

The most obvious way to save money is to ditch the takeaway habit for home-brewed cuppas, with a Canstar study in August finding that 29 per cent of those surveyed had done just that.

It also found 19 per cent had bought a coffee machine, showing it isn’t just instant coffee brands reaping the benefits of the switch.

For those not yet ready to ditch their takeaway habit, Sarah Orr suggested other ways to save money, including:

• Signing up to café loyalty programs to earn free drinks and discounts.
• Looking out for café vouchers or coffee discounts being offered as part of their rewards programs run by insurers, banks and other businesses.
• Asking about concessions for seniors, students and members of certain organisations.