It’s really easy to get excited the inflation rate may be coming down but in this case, the devil really is in the detail.
Those doing it tough will continue to do so for a while yet, and those a little more fortunate to have a bit of spare cash will continue to be shocked at just how much food costs.
The Perth figures this week are still staggering — bread prices increased another 4.5 per cent in the three months to June 30. There’s been a staggering 20 percentage point increase in bread prices since September 2021, and no meaningful decline in more than five years.
Milk, too, is still increasing, as is the price of ice cream, fruit and vegetables — undoing the declines at the end of last year — eggs and water and soft drink.
Unfortunately, there’s little respite ahead for families struggling to provide the basics or enough of them. Coles and Woolworths executives told Parliament this week there’d been a noticeable uptick in people shopping around. Loyalty is out of fashion.
It’s little wonder, given a weekly shop (also falling out of favour) for a family of four can easily cost upwards of $300.
With the major supermarkets set to report full-year results next month, you can bet they’ll be facing scrutiny over prices, particularly if profits rise. A key detail will be how they explain relationships with suppliers.
In the UK — where even government price caps have been suggested — grocery giant Tesco is putting pressure on its suppliers to lower prices so it can be more aggressive in bringing prices down for customers.
Will any of the Aussie giants follow suit?