As we navigate through the current cost-of-living crisis, many Australians are understandably concerned about the future of their grocery bills. With 2025 on the horizon, experts have weighed in on what we can expect when it comes to the price of our weekly shop. Unfortunately, the forecast isn’t as bright as we’d hope, with predictions indicating that grocery prices are unlikely to see a significant decrease.
The cost of a shopping basket has become a significant concern for many, and it seems that this burden will persist. While there’s a glimmer of hope that prices won’t climb higher at the checkout come the New Year, the relief is only that the situation may not worsen. This is cold comfort for those already struggling to make ends meet.
However, there is a silver lining. The Australian Competition and Consumer Commission (ACCC) is set to shine a spotlight on the pricing strategies of major supermarkets, with an investigation that could lead to more competitive discounts for consumers. The findings of this probe, due to be revealed in early 2025, may prompt big firms to offer better deals to maintain their public image and customer loyalty.
Retail expert Gary Mortimer, a professor of consumer behaviour and retail marketing at Queensland University of Technology, has shared his insights. He suggests that for any significant change in grocery prices to occur, other costs, such as fuel, would need to decrease. However, he doesn’t see this happening in the near future.
The ACCC’s grilling of supermarket bosses from ALDI, IGA affiliate Metcash, Coles, and Woolworths over their pricing strategies is a step towards transparency. The final report, expected in February, will clarify the extent to which Australians are being squeezed at the checkout. This could be a catalyst for change, with supermarkets potentially implementing long-term discounting and strong price promotions to appease consumers.
Despite the bleak outlook, it’s not all doom and gloom. Food prices, which rose by 3.3 per cent over the 12 months to the September 2024 quarter, according to the ABS, may see some stability. Fruit and vegetables, in particular, have seen price hikes due to unfavourable growing conditions, while other products like chocolate and eggs have also become more expensive due to global market pressures and supply shortages.
To combat these rising costs, Mortimer recommends taking advantage of discounts when they’re available and using apps like Frugl to find the best deals. Additionally, international trade developments, such as potential actions by figures like Donald Trump in the USA, could inadvertently benefit Australians. Tariffs on China could lead to a surplus of inventory that needs to be sold at a discount, offering a unique opportunity for savvy shoppers.
We’d love to hear from you! Have you discovered any helpful strategies for saving on your weekly grocery shop? Are there specific items you’ve substituted or stopped buying to keep costs down? Share your experiences and tips in the comments below, and let’s support each other during these challenging times.
Also read: Stretch your grocery budget with this practical $10 saving strategy
We used to spend $40 on average each week on our Greyhound’s food. Now our grocery bill has consumed that $40 saving – the Greyhound died two years ago – this averages an increase of 20% over the two years.
What annoys me is that to meet the supermarkets pricing strategy the quantity of the contents has been reduced, but the price remains the same.
Only buy washing powder, make up and creams, and other expensive items when they are on 50% discount. Always go through the supermarket catalogues for the specials of the week.