The main two supermarket chains like to spruik their locked and dropped prices and price freezes far and wide.
While they make a lot of noise about how these tactics support consumers, the story behind the hype is that the prices of other products continue to soar.
According to the ABC, investment bank UBS has found food prices averaged a 9.2 per cent rise over the three months to 31 December. The inflation rate was 7.8 per cent at the end of 2022.
Read: Why inflation hits retirement income hardest
Woolworths increased its prices by 8.4 per cent in the year to 30 September, and to 9.3 per cent to the end of the year. Could that have been to take advantage of the Christmas shopping period?
Coles was close behind with an 8.1 per cent increase to 30 September and 9.1 per cent by 31 December.
UBS analysts claimed the dip leading up to Christmas was due to Coles trying to claw back market share against Woolworths.
“Coles is maintaining promotional depth and breadth ahead of Woolworths, arguably reflective of it seeking to differentiate on price as per its period of market share gains in the early to mid-2010s and following market share losses in recent years,” the report stated.
The report warned consumers that price increases were not likely to slow down any time soon.
“Food inflation is expected to continue,” the report stated.
“Trade feedback indicates cost pressures remain – e.g. supply chain, specific product inputs – and are arguably still rising for dry grocery suppliers with further cost increases expected to support dry grocery inflation for the remainder of financial year 2023.”
Read: When is it okay to be a cheapskate?
This week’s best deals
IGA
Sensible: Morning Fresh Dishwashing liquid, 900ml, half price, $4.75. Morning Fresh is the best dishwashing liquid and I’m happy to argue the toss with anyone who disagrees with me.
Indulgence: Peters Original Twin Pole varieties, eight pack, $5.50, save $2. Who knows why these need two ice cream sticks, but here we are. A favourite when I was a kid – you could break them in half and give one to a friend – they have had a bit of an upgrade with some funky new flavours.
See the catalogue here.
Coles
Sensible: Dare flavoured milk varieties, $3.80, save $1. Get a hit of coffee with these tradies’ delights. Good for a pick-me-up on a hot day.
Indulgence: Carman’s Oat Slices, price dropped to $4.90. Good snack product from an Australian company. Belgian Chocolate is the best, but I’m yet to see how it’s healthy for you.
See the catalogue here.
Read: What is ‘shrinkflation’ and what can we do about it?
Woolworths
Sensible: Lipton Ice Tea, 1.5L, half price, $2.45. A great summer drink in a good range of varieties.
Indulgence: Lavazza Qualita Oro Coffee Beans or Ground, 500g, half price, $10. For the price of two café coffees, this half-price bag of coffee should have you feeling smug about all the money you have saved and should last you weeks at home.
See the catalogue here.
Aldi
Sensible: Tibaldi Sriracha Bacon, $3.99 for 220g. Chilli-flavoured bacon, I’m here for it.
Indulgence: Lindenhof Peach Schnapps, $19.99. Nothing brings back the memories of teenage regret like the smell of schnapps. Anyway, as an adult you should probably use it to poach delicious summer stone fruit and serve it with a dollop of ice cream.
See the catalogue here.
Are you cutting back on groceries to save money? Why not share your tips in the comments section below?
