Aldi continues to be the cheapest supermarket for groceries, CHOICE report finds

A quarterly report into grocery prices has compared the cost of a basket of groceries from Coles, Woolworths, Aldi and IGA, with one chain clearly cheaper.

Aldi remains the most affordable supermarket chain to do your weekly shop, beating Coles, Woolies and IGA by up to $28.16, the second government-commissioned report in supermarket prices has revealed.

More than 104 visits conducted at supermarkets across the country by CHOICE mystery shoppers revealed the same basket of groceries cost $50.79 at Aldi, $66.22 at Coles (or $69.91 without specials), $68.70 at Woolworths (or $68.37 without specials), and $78.95 at IGA.

Shoppers purchased the same 14-item basket in each shop, which included butter, flour, white sugar, a block of tasty cheese, beef mince, apples, carrots and Weetbix, and featured a mix of national brands and comparable supermarket brands and budget brand options.

Four-way split of supermarket logos. Picture: NCA NewsWire

In the second iteration of the report, which was commissioned by the Albanese government, the prices had marginally dropped at Aldi and Coles but increased at Woolworths.

The report noted prices “varied greatly” at IGA stories, which are owned and operated independently by franchisees, and shoppers found it more difficult to identify products on special due to “inconsistent signage”.

“When looking at prices with specials, Woolworths has slipped from second to third place in this wave of research,” CHOICE chief executive Ashley de Silva said.

“The Woolworths basket cost $68.37, compared to $64.93 in March. Coles, however, came down in price with our basket of 14 items costing $66.22, compared to $68.52 in March.

“Aldi’s basket came in at $50.79, compared to $51.51 in March, and was once again the clear winner when it came to value for money.”

The same basket of groceries cost up to $28.16 higher at IGA supermarkets, which are independently owned by franchisees. Picture: NewsWire/ Gaye Gerard

Prime Minister Anthony Albanese welcomed the report but acknowledged there was “more to do” but said the report would give households “important information”.

Mr Albanese has come down on supermarket giants Coles and Woolworths, after the Australian Competition & Consumer Commission (ACCC) said it would be taking court action over allegations they misled consumers through their discount campaigns.

The consumer watchdog said both grocers had inflated prices of hundreds of items by 15 per cent, before applying promotional stickers featuring prices higher than original costs.

On Tuesday, Mr Albanese told Coles and Woolworths to “get your act together,” and said the businesses would face “significant fines” if they were found guilty.

On Monday, the government also released a draft exposure for its Mandatory Food and Grocery, which aims to make the system fairer for producers, farmers, and customers, while also subjecting supermarkets to multi million-dollar fines for serious breaches.

The code is currently under consultation and the government is aiming to introduce legislation for it next year.