10% hike as shoppers squeezed more at the supermarket

The cost of ordinary supermarket items has risen by more than 10 per cent, as Victorians struggle with a skyrocketing cost of living. See how much your shopping list has increased.

Victorian budgets are being squeezed an extra 10 per cent at the supermarket checkout as Australia’s cost of living crisis continues to worsen.

Worryingly a recent survey of shoppers found more than 60 per cent were concerned about price increases, with 48 per cent saying they’d respond by purchasing less.

The hikes have been attributed to ongoing supply chain issues including the floods in New South Wales and Queensland earlier this year and high petrol prices, according to Savvy managing director Bill Tsouvalas.

“Higher fuel prices cascade into food prices, especially when much of our supply chain is dependent on trucks,” he said.

“Families will need to budget for the increase in food prices as well as any shocks in the system such as the inevitable increase in the RBA cash rate.”

Supermarket giants, including Coles Woolworths and Aldi, have recently warned prices will continue to rise as suppliers pass on cost increases to the retailers.

Also impacting the price of the weekly shop, analysis by global financial firm UBS found sales and promotional activity had dropped at the major supermarkets.

UBS analyst Shaun Cousins attributed the trend to the availability of products affected by supply chain pressures but also a push by the retailers to boost profits.

But as experts and companies warn consumers of “inevitable” price rises, Leader journalists set out to find out the impact on ordinary Victorians.

Visiting the same supermarkets five months apart, the analysis found the average price of a 25-item basket had risen by 10.5 per cent.

In March the basic list of 25 essentials tallied an average $128.95, but by August the bill had risen to $142.65.

The changes hit metropolitan Melbourne shoppers harder than their regional counterparts, with the total averaging out at $16.20 more in August compared to $12.11 in regional Victoria.

Regional Victorians were still paying more than city shoppers ($148 to $139.97), but the disparity between the two has fallen from 13 per cent in March to 5.7 per cent.

Prices varied substantially across Victoria, ranging from $136.84 at an East Brunswick Coles to $160.24 at Woolworths in Cowes.

Inflation is hitting every aisle at the supermarket too, with lettuce (100 per cent), broccoli (21 per cent), Colgate toothpaste (61 per cent), Flora margarine (51 per cent), spaghetti (33 per cent) and chicken breast fillets (18 per cent) among the standout price rises.

RMIT associate professor of economics Bilgehan Karabay said cost increases do not hit all goods equally, with essential goods and fresh produce the most likely to face price rises.

“These are the products shoppers will always have in their cart, which means demand is inelastic and shoppers won’t be able to swap for alternative items,” he said.