How much have prices increased in Australia? – By Jessica Bahr
As the cost of living continues to soar, new analysis has shown that Australian grocery prices have risen by almost 10 per cent. Why are supermarkets outpacing inflation?
Source : sbs
If your grocery bill seems to be increasing each month, you’re not imagining it.
How much are grocery prices increasing?
The analysis, which tracks prices on a monthly basis, found Coles’ inflation increased from 9.1 per cent in March to 10.4 per cent in April.
Woolworths’ inflation went from 9.7 per cent in March to 8.7 per cent in April.
In comparison, the Consumer Price Index – which measures price changes in goods and services – hit 7 per cent in the 12 months to March, meaning supermarket price hikes are outpacing inflation.
In the UBS report, analysts described the increasing rate of food inflation as a “surprise”.
“The increasing rate of food inflation is a surprise,” the report says.
“We suggest the achievement of a new peak in food inflation (excluding tobacco) is due to ongoing cost pressures on suppliers due to commodities and the domestic supply chain, including labour.”
Supermarkets dispute price analysis
The supermarket giants say the UBS analysis does not provide the full context behind their pricing and sales.
A Coles spokesperson told SBS News that the UBS report did not accurately reflect how inflation is calculated and reported.
“UBS’s sample data does not capture our full range of products and does not capture changes in customer buying behaviours which impact our sales volumes and product mix,” the spokesperson said.
The spokesperson also disputed the figures reported by UBS, saying Coles inflation was “significantly lower”.
“UBS used the same price tracker for a report ahead of the 3Q23 results and reported Coles inflation at 9%.”
“Our official inflation figure was reported significantly lower at 6.2%.”
A Woolworths Group spokesperson said the rising grocery costs were mainly due to higher wholesale prices.
“The higher wholesale prices we’re paying to suppliers is the primary driver of inflation,” the spokesperson said.
