Photo of $5.50 Coles lettuce exposes Australia’s cost of living crisis

A single image of lettuces being sold at Coles for nearly $6 has exposed the stark reality of Australia’s cost of living crisis.

Leafy green vegetables aren’t often considered the representatives for our national cost of living crisis – but that’s exactly what one picture, of a stand of supermarket lettuces, has done.

The photo of the $5.50 lettuces, taken at Coles and uploaded to Reddit on Tuesday, sparked a fierce debate among consumers already overwhelmed by soaring food and fuel prices and offered a stark reminder of what’s to come.

“A few weeks ago, when our supermarkets had a massive food shortage as a last resort I went to my local Aldi to try and get some fresh fruit and veg,” one user commented on the photo.

“They had lettuce half this size and were charging $5.50 each for them.”

Another questioned “what’s going on”, writing that “nearly everything I routinely buy seems to have increased [by] 15-20%. The increases are not small”.

The pandemic, freight costs, recent extreme weather and now Russian President Vladimir Putin’s invasion of – and subsequent war on – Ukraine have exacerbated short and long-term supply issues and sent food and global oil prices soaring.

“Food and grain prices are rising, which will pose challenges to lower income economies, including many in our own region,” Prime Minister Scott Morrison told the AFR Business Summit earlier this month in a virtual speech.

“Commodity price rises will be the most obvious transmission channel to Australia. Petrol prices in Australia have risen, like they are elsewhere.”

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A single image of a local supermarket selling lettuces for nearly $6 each has revealed the stark reality of Australia's cost of living crisis as food and petrol prices continue to soar. Picture: Reddit

Ritchies IGA chief executive Fred Harrison warned last week that families could expect to pay more for fresh and frozen food in the coming weeks thanks to the combined impact of the war in Ukraine and floods in NSW and Queensland.

“Vegetables are very scarce at the moment due to the floods,” Mr Harrison told the ABC.

“So we’ve seen cabbages, potatoes and broccoli in particular jump 75 per cent compared to a couple of weeks ago.”

Mr Harrison warned prices will remain high for at least six months – with not just fresh but frozen produce set to be impacted but they’d still remain “relatively cheaper”.

“Frozen vegetables have not recovered from the pandemic,” he said.

“There’s a major shortage – whether it be McCain Foods or Simplot, suppliers are really battling to get good stock weight to us.

“I’ve got no doubt those suppliers are going to put price increases through the system, but that will take a few months to come through.

“There is going to be a shortage of frozen products in the next couple of months, but it will still be relatively cheaper than buying fresh produce.”

It’s not just fruit and veg, though, where costs are soaring – Coca Cola and Fanta prices have increased, while Arnotts is struggling to secure essential ingredients.

Ritchies IGA chief executive Fred Harrison warned families could expect to pay more for fresh and frozen food in the coming weeks. Picture: Brad Fleet

Consumer network data found that the cost of common items have surged at rates well beyond Australia’s 2021 headline inflation rate in the last 12 months. Picture: Dallas Kilponen/Woolworths

Data from consumer network One Big Switch comparing the cost of common items between last February and this one showed that, in many cases, they’ve surged at rates well beyond Australia’s 2021 headline inflation rate of 3.5 per cent.

When it came to meat, diced beef soared by 22 per cent in cost and basic beef mince rose by 14 per cent.

The prices of pantry staples such as oils went up by 19 per cent, branded canned fruit jumped by 17 per cent and baked beans and tinned spaghetti rose by 21 per cent.

One Big Switch said some individual products revealed “shocking price inflation” and it has called for a review into the cost of living.

A Coles spokesperson said a number of factors were driving inflation for all retailers, but that the grocery giant was doing what it could to continue “to build strong, multigenerational, collaborative partnerships with Australian farmers and producers”.

“These partnerships enable us to source directly from suppliers and help us secure faster, fresher produce at great value for our customers,” they added.

“We are supporting our suppliers in areas impacted by the recent floods by visiting their sites to meet with growers and understand their individual impact, purchasing the product they have available, and continuing to work collaboratively with them in coming weeks and months as they re-establish operations.”

Delivering his fourth federal budget on Tuesday night, Treasurer Josh Frydenberg promised it would lighten the load on households struggling with soaring food and petrol costs.

But not everyone was impressed with the Morrison Government’s “temporary, targeted and responsible cost of living package”, aimed at “easing these pressures”.

Opposition Leader Anthony Albanese told ABC News Breakfast on Wednesday morning that the measures – which include a halving of the fuel excise for six months, payments of $250 for welfare recipients and pensions and extra one-off tax breaks for low and middle-income earners – “has all the sincerity of a fake tan”.

“This is a plan for an election, not a plan for Australia’s future, and I think people will see it for what it is,” he said.

As Fortunes Fool: Australia’s Choices author Satyajit Das warned in an op-ed for The Guardian on Monday, “actions, such as a one-off payment to the worst affected or reducing taxes on fuel, will have limited and short-term impact”.

“If not offset by adjustments elsewhere, they will add to – not reduce – demand, increasing price pressures and may worsen public finances,” he added.

“With wages unlikely to keep pace with this increase in prices, the cost of living crisis is unlikely to abate soon, hurting ordinary households and exacerbating inequality, irrespective of who voters put in charge.”