Supermarket sweep: How to save money on groceries and still eat like a king

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As much as I’d like it not to be the case, I’m a sucker for a chocolate biscuit. Whenever I’m at the shops I take great pride in power walking past various vices – fancy cheeses, chips, those pick-and-mix chocolate-covered peanuts – but when I get to the biscuit aisle, my pace slows and I gaze longingly at the different varieties of Tim Tam.

However, in recent months my hand has been stayed, not because of improved self-control (wouldn’t that be nice), but because they’re just getting too bloody expensive.

Grocery prices are creeping ever higher, but there are some ways to save money.Credit: Aresna Villanueva

Chocolate biscuit lovers or not, we’ve all noticed prices creeping higher at the shops, especially coming out of the pandemic when grocery costs remained relatively constrained. ABS data for April shows food and beverage costs have increased 8 per cent since last year, with the worst-hit categories being bread (up 11.4 per cent), dairy (up 14.5 per cent) and other dry goods (up 11.7 per cent). However, these figures might even be a bit undercooked, according to analysts at UBS, who believe food inflation is running closer to 10 per cent, with prices for certain items such as spreads and yoghurt rising double digits.

It’s difficult to pinpoint the main reason for these rises, as inflation is being driven by a grab bag of factors, including the war in Ukraine, pandemic-induced supply chain issues, labour shortages (and increased labour costs), high costs for things such as fuel and fertiliser, and a raft of extreme weather events that have reduced crop yields. It’s also likely there’s maybe, possibly, a little bit of “excessive pricing” going on at the supermarkets, but don’t say that too loudly.

What’s the problem?

Regardless of the cause, the effect is a serious one, forcing us all to fork out more for our food, which is our second-highest expense after housing. To make matters worse, a fall in inflation – as is expected later this year – won’t mean prices will fall in tandem, with higher grocery costs expected to persist for some time. Many products may never return to the price they used to be.

What you can do about it

Much like my abstemious biscuit consumption, many of us are already cutting back on our groceries, however, here are a few tips and tricks you may not be implementing yet:

• Keep your eyes on the price: Sadly, determining what’s best value while you’re tossing up which brand of cereal to buy isn’t as easy as it might seem, as companies have all sorts of tricks to try to make something seem like a bargain when it actually isn’t. Thankfully, the ACCC forces each product to display its “unit pricing”, breaking down the cost of goods into their cost per litre, or gram, or even per sheet for toilet paper, and this should be the first thing you look at when comparing items. “The largest package, special deals or home brand items may not be the cheapest option,” the ACCC says. “Comparing the unit prices of grocery items will help you get the best value for money.”
• Get a refill: While this wasn’t the case 10 or so years ago, a number of brands now offer refills for their products in an effort to be more sustainable. It’s also a great way to save some money, according to Liam Kennedy from consumer advocacy group Choice: “Keep looking past the pre-filled dispensers and see if your favourite brand also sells special refill packs (often found on the lower shelves),” he says. “These not only ease your impact on the environment but can also deliver average savings of 32 per cent compared with just buying another pre-filled dispenser.”
• Be creative with your cooking, and ask AI for help: Using up all your vegetables before they go to waste is a great way to save money on fresh ingredients, so don’t be afraid to change up your recipes, says Ruby Wake, sustainability project manager at OzHarvest. “Don’t let one missing ingredient throw you off – there’s always an alternative,” she says. “And on the flip-side – if you’re going to be left with half an onion or a few sprigs of herbs – just throw it in.” Wake also suggests using tools such as ChatGPT to come up with recipes that use up what you have in your fridge to save you (and your wallet) a trip to the shops. Also try to buy your fruit and vegetables in season, as they can be significantly cheaper (for example, cauliflower is very cheap currently).
• Shop local: Independent supermarkets such as IGA and Harris Farm had a real moment during the pandemic, however many of us have returned to shopping at the big two. Checking out an independent grocer is well worth the time, as they use different suppliers than the major supermarkets, which can sometimes mean better value for you.

  Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.