Aldi reveals what Australians are cutting back on as cost of living pressure and inflation hits

Bargain supermarket giant Aldi has revealed how Australia’s soaring cost of living has forced shoppers to change what they buy at the checkout.

Australia’s soaring cost of living has forced shoppers to dramatically slash their spending at the checkout.

New data shows that nearly 80 per cent of consumers have reduced their spending in the past year, specifically on restaurants/takeaway (44 per cent) and meat (39 per cent).

To ease the financial pressure, Australians have also cut back on non-food items including homewares/electronics (36 per cent), clothing (31 per cent) and petrol (28 per cent).

The report, commissioned by Aldi but compiled and analysed by Price Waterhouse Coopers (PwC), also found 98 per cent of the 1039 people surveyed had noticed an increase in the overall cost of products compared to previous years.

Groceries (51 per cent) and petrol (59 per cent) topped the list of concerns for the year ahead,

with more than half of respondents saying they would be cutting back on their overall shopping.

“Inflation is real and directly impacts our operations and that of our food and grocery partners,” Aldi’s director customer interactions, Adrian Christie, said.

“Some grocery prices will inevitably increase in the months ahead.

“Our model is built on efficiency, from our smaller format stores, to our carefully curated private label groceries which allows us to have greater control of our range.

“Price is always our focus, and maintaining our price gap to deliver the best value groceries remains our priority.”

Aldi has revealed what Australia’s are cutting back on in their Price Report.

Money expert at Finder, Rebecca Pike, said creating a budget can give Aussies “financial freedom” but without feeling guilty or “thinking that you’re putting your financial future on the line”.

“Unlike certain household bills, groceries are something people feel they have more control over which is why they are cutting back on items such as meat,” she said.

Finder’s Consumer Sentiment Tracker found in the past three months almost a third of Aussies listed groceries as one of their most-stressful expenses.

“Try doing your grocery shopping at night. Fresh produce often goes on sale later in the day, to avoid it going to waste. Sometimes you’ll be able to grab things like fresh meat and bakery items for half price, and cooked chickens for a few dollars each,” Ms Pike said.

“Always have a shopping list before hitting the grocery shops to prevent you from buying things you don't necessarily need.

Now is also the time to go back over your expenses and see what else you might be able to save on.”

Data analysed by PwC as part of Aldi’s Price Report confirms a price gap of 15.6 per cent compared to the cheapest products at the nearest competitor. It means a shopping basket at Aldi is at least 15.6 per cent cheaper than at other supermarkets, meaning an average family can save $1,555 a year.

Last week, Woolworths announced it was slashing the price of more than 300 of everyday items to help Australians struggling with the costs.

It came as Coles placed 530 new products on their everyday low prices in March to also ease the burden on households.

TIPS ON SPENDING WHILE ALSO SAVING

Grocery shopping

• Try doing your grocery shopping at night.

• Always have a shopping list before hitting the grocery shops to prevent you from buying things you don't necessarily need.

• Don’t go shopping when you’re hungry

• Make sure you’re paying the lowest possible price for kitchen staples – keep an eagle eye out for special deals and online sales.

Energy bills

• Shop around for the newest deals which could save you money

• Aussies can save up to $322 per year by switching providers and making a few simple changes.

Originally published as Aldi reveals what Australians are cutting back on as cost of living pressure and inflation hits