‘Strategic battle’: Aussies struggling to make ends meet

Grocery bills have surged by 30 per cent during the Albanese government’s first term, leaving families $3000 a year poorer, exclusive analysis reveals. See the list.

Grocery bills have surged by 30 per cent during the Albanese government’s first term, leaving families $3000 a year poorer, exclusive analysis reveals.

Experts say the relentless rise in the price of consumer staples has transformed what was once a routine task into a “strategic battle” to make ends meet.

Supermarkets say more customers are responding to cost increases by shopping at multiple chains, as well as by eating more canned and frozen food.

Soaring grocery expenses have been even harder to deal with because of the simultaneous intensification of financial pressures from utilities such as electricity and home loan repayments or rent.

The price of groceries is a major concern for Australians.

The cost of living is the number one vote driver by a wide margin, with groceries the greatest source of concern, according to recent research by SEC Newgate.

Secret shopping by this masthead shows a basket of 29 items from Coles costs 36 per cent more today than it did in June 2022. At Woolworths, the increase has been 30 per cent. And at Aldi, there’s been a 26 per cent jump.

Based on the trio’s market share, the average increase has been about 32 per cent.

That’s added more than $60 a week or $3000 a year to the cost of a typical family shop.

Comparison website Finder’s head of consumer research Graham Cooke said more shoppers were buying from multiple chains, using coupons and doing bigger shops to exploit bulk-purchase programs.

“What was once a routine weekly task has transformed into a strategic battle against rising costs, forcing many to adopt extreme shopping habits,” Mr Cooke said.

The results of this masthead’s shopping survey are confirmed by Finder surveys of people’s grocery spending over time, which show the average weekly outlay for a household of four has risen from $213 to $270 since June 2022.

A recent Coles survey of more than 8500 shoppers revealed 28 per cent of respondents were eating more frozen food than a year ago and 16 per cent were buying more canned goods.

And 17 per cent said they were “making more of an effort to eat before they go to the supermarket to avoid impulse purchases,” a Coles spokeswoman said.

A Woolworths spokesman said “competition in the grocery sector is only increasing with more customers cross shopping between supermarkets and buying non-food products such as cleaning and personal care products from specialty retailers.”

Aldi declined to offer any insights.

AMP chief economist Shane Oliver said drivers of inflation included cashed-up households spending pandemic-era stimulus after being released from lockdown, low interest rates, the war in Ukraine and the 2022 floods.

AMP Head of Investment Strategy and Chief Economist Dr Shane Oliver answers questions at the Senate Select Committee Inquiry into the Cost of Living in August 2024. Picture: NewsWire / John Appleyard

Dr Oliver said the current government’s “biggest mistake was to continue spending at high levels which kept demand higher than it would have otherwise been and general inflation higher than it would have been for longer.”

On groceries, he said the main area where the “government has let us down is the surge in immigration levels that occurred when the economy reopened.

“It added to demand in the economy and that included demand for groceries,” Dr Oliver said.

In calendar 2023, net immigration was more than 520,000 – twice the pre-pandemic rate.

National polling conducted in September 2022 by SEC Newgate found 43 per cent of respondents considered Labor the better party to deal with cost of living pressures, versus the Coalition on 22 per cent.

“But for all of last year and the start of this year it has been neck and neck,” said SEC Newgate research partner David Stolper.

Grocery prices are hitting Aussies hard. Picture: NCA NewsWire / Flavio Brancaleone

An Albanese government spokeswoman defended the government’s “cost of living relief”.

She said Labor had delivered a tax cut for every Australian, provided direct energy bill relief, as well as made it cheaper to see a doctor and purchase medicines.

“We know grocery prices are hurting people and that’s why we have a plan to make sure customers and farmers get a fairer price at the checkout,” the government spokeswoman said.

“We’re strengthening the Food and Grocery Code of Conduct with fines of up to $10 million for supermarkets, cracking down on shrinkflation and providing more funding for the ACCC to crack down on misleading and deceptive prices,” she added

In this masthead’s shopping comparison, the new price checks were undertaken within 24 hours — at the same stores as in June 2022.

While Woolies had a smaller percentage increase than Coles, the basket from the Fresh Food People was more expensive.

The Priestley family, Denia and Mark with their children Emily, 17, Peter 20, and Ben, 15 with their weekly shopping. Picture: Brendan Read

Asked to estimate how much grocery prices have risen since mid 2022, Denia Priestley guessed 30 per cent. She was bang on.

She and husband Mark are doing everything they can to contain their supermarket expenses.

They make meal plans as well as shopping lists.

And they mainly buy from the cheapest chain, Aldi, but watch the Woolworths and Coles apps for half-price specials on things they know they will use.

Mr Priestley offered a further piece of advice: “Don’t shop with kids.”

“Or your husband,” Mrs Priestley added, half-joking.

The Priestley family, Emily, 15, Denia, Peter, 17, Mark, and Ben, 13, at home, in Marsden Park, pictured in 2022. Picture: Justin Lloyd.

The Priestleys featured in this masthead’s June 2022 coverage of grocery price inflation.

At the time they had recently changed home-loan providers and locked in a fixed rate at 1.9 per cent — a move that has saved them tens of thousands of dollars in interest.

But the term ends next month.

To partially offset the big jump in their mortgage repayments, the Priestleys intend to cut out takeaway meals and some streaming platforms.

The family, from Marsden Park in Sydney’s northwest, will also shop around for better value on insurance and utilities.

“You’ve got to keep an eye on those bills,” Mrs Priestley said.

Originally published as ‘Strategic battle’: Aussies struggling to make ends meet