Inflation impacts shopping as supermarket prices climb further

Some major brand’s supermarket staples have surged 30 per cent, but lovers of pies, pet food and Monte Carlos can rejoice. See the list of biggest price rises and falls.

Shoppers are still suffering from inflation on supermarket shelves after steep price rises hit several products in the first half of this year.

A new analysis by grocery app Frugl has found that while rising prices have slowed since 2022, there have been big increases in some popular items since January.

Pantry items and cleaning products have delivered some of the biggest jumps, with 30 per cent-plus rises in some rice products, dishwasher tablets, tissues, herbs and frozen vegetables, Frugl’s analysis of Coles and Woolworths found.

However, shoppers are also seeing sharply lower prices in products including Mrs Macs pies, Tip Top raisin bread, porridge, cat food and Arnotts Monte Carlo Biscuits.

Frugl chief executive officer Sean Smith said some products had been affected by supply chain issues and poor harvests – particularly for rice.

“Trends suggest that we reached the peak of grocery price inflation towards the end of 2022,” he said.

“Although year-on-year prices have continued to rise so far in 2023, the rate of increase has slowed.”

Mr Smith said further big price rises might be isolated to specific products and circumstances, although overall inflation reflected global impacts including the war in Ukraine, severe weather and lasting effects of the pandemic.

“These are all contributing to the rising cost of living and why Australian shoppers are feeling the pinch,” he said.

“Inflation will continue to be a prevalent issue for the remainder of 2023 … it’s not something that can be quickly combated, so Australians can’t expect to see prices drop to pre-2022 levels any time soon.”

Shoppers were seeing some reductions as supermarkets delivered “low price everyday promotions”, Mr Smith said.

“The major supermarkets have attempted to alleviate the pressure on households by locking in the price of certain staple items for an extended period of time,” he said.

“Supermarkets appear to have focused on reductions in specific categories, including ready meals, meal bases and snacks.”

Queensland Consumers Association spokesman Ian Jarratt said prices could vary dramatically between supermarkets, and issues around commodity prices, raw materials, electricity and fuel costs impacted businesses differently.

“It’s a market operating in a supply and demand situation,” he said.

“Consumers have got a lot of power, but they don’t exercise it enough. Be on your toes and be shopping around.

“There are very significant differences in the cost of different brands, pack sizes, and buying loose versus packaged.”

Shoppers should check labels to see the unit price – the cost of an item per unit of measure such as per litre or per 100g – to judge the true price of a supermarket item, Mr Jarratt said.

He said the unit price was “your best friend in the supermarket, your best comparison”.

“The rules of thumb that loose is cheaper than packaged just doesn’t work. Sometimes the largest package is not the lowest unit price.

“Look at whether there are substitute products around – a lot of people are doing that, particularly with some fruit, vegetables and meats.”

Frugl’s Mr Smith said free shopping apps could help people compare prices across major retailers.

“Although prices are increasing on most products, there are still great deals and promotions that can help shoppers save on the essentials,” he said.

“Home brand product ranges are growing at many supermarket retailers, and these products often cost considerably less than their branded equivalents.”

Originally published as Inflation impacts shopping as supermarket prices climb further