The Melbourne café that still sells coffee for $2.50

A small and unassuming café in a suburban Melbourne street is attracting a growing fan base thanks to its inflation-defying prices.

At Café Perri in Carnegie, you can pick up an espresso for $2.50, while a cappuccino will set you back just $3.

Owner Jimmy Perri says he is all about keeping prices low, and that while his margins are lower than competitors, his volumes are higher.

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"My policy is to have high quality, low price," he told 9News.

Since moving from Melbourne's CBD in September last year, the café has attracted a growing loyal customer base.

"I haven't seen these prices for 15 to 20 years," one customer told 9News.

Others confirmed that their brews were "exceptionally good", despite the bargain price.

The food menu is also kept affordable, with pasta offerings for as little as $5 and pizzas starting at $7.

Perri said that while he did not pay rent, he did have a mortgage.

While some competitors have labelled the prices "unsustainable", Perri says he doesn't plan to raise prices any time soon.

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