While Australians are still smarting from the damages left behind by the Queensland floods, another deluge may be forthcoming as the federal government sent warnings of rising food costs, particularly for fruit and vegetable prices.

Federal Treasurer Wayne Swan said on Tuesday that the development was directly caused by the flooding and price hikes could reach double-figure levels, according to the latest data published by the Australian Bureau of Statistics.

With the December inflation number of 2.7 percent unlikely to cause any rate movements, the ABS said that such good news could be effectively squashed by steep climbs on fruit and vegetable prices, which jumped by 15.5 percent and 11.4 percent respectively.

That December rise will likely be sustained in the months to come, said Swan, as he explained that continuing high prices "will be felt by Australian families at the checkout because of the impact particularly on fruit and vegetable prices."

While the commonwealth already spent some $230 million for emergency relief payments, federal authorities are mulling the possibility of a one-off levy payment to muster enough cash for its 75 percent cost share in restoring infrastructures devastated by the floods.

Both Prime Minister Julia Gillard and Swan are toying with the notion of a flood levy, which the federal treasurer has pointed out is a pressing need for the government to effectively deal with economic impact of the flooding disaster, which he now characterised as "probably the biggest in history."

Swan said that money has to be sourced from somewhere and levy is a viable option, stressing that "the only responsible thing to do is to have all options on the table."

He added that amidst the crisis, the government must maintain its thrust of setting aside considerable amount of savings as he gave assurance that relief packages would be subject to wide-ranging consultations though the treasurer remains on questions of legislative support for the planned flood levy.

It appears though that the government could not count on any support coming from the opposition as its treasury spokesman, Joe Hockey, remains adamant on his stand that generosity in times of crisis does not warrant for a levy.

Hockey argued that the flood levy should not even be in the list of options being studied by the government and it is "inconceivable that the government would be contemplating adding to the financial pressures on Australian families by imposing a new tax to meet the costs of repairing the damage from the floods."