Coles reveals shocking extent of food price hikes

Supermarket giant Coles has revealed the devastating extent of grocery inflation that is heaping pressure on household budgets.

Coles has revealed grocery inflation has almost doubled in the first quarter, heaping further pressure on already strained household budgets.

The supermarket giant said total inflation was at 7.1 per cent for the first quarter, compared to 4.3 per cent in the previous fourth quarter.

Fresh inflation was 8.8 per cent and continued to be driven by bakery, with higher wheat prices, as well as fresh produce such as berries and bananas.

Coles has revealed total inflation was at 7.1 per cent for the first quarter. Picture: NCA NewsWire/Jeremy Piper

Supermarkets recorded inflation, excluding tobacco and fresh produce, of 6.7 per cent for the first quarter.

Raw materials, commodity, shipping and fuel costs were the key drivers of supplier input cost requests.

“Our commitment to providing trusted value, including Australia’s widest range of own brand products and the successful introduction of ‘dropped and locked’ prices, is more relevant than ever with rising inflation placing pressure on many Australian households,” Coles Group chief executive Steven Cain said.

It comes as many people are struggling to keep up with soaring cost of living pressures.

Many families have been cutting down on meat and freezing meals to make their food go a bit further.

The hip pocket pain continues for many families.

Supermarkets sales revenue hit $8.8bn for the first quarter, increasing by 1.6 per cent on the prior corresponding period.

Covid-19 and flu costs were slashed to $10m, mostly due to absenteeism, and was expected to reduce slightly in the second quarter.

Coles completed three renewals during the quarter, while four stores were opened and one closed, taking the total network to 838 supermarkets.

The liquor area completed 58 store renewals, opened seven new stores and closed six, making a total of 934 stores.