"Treated as fools": Prime Minister hits out at supermarkets
On Thursday night the Australian Competition and Consumer Commission (ACCC) released an interim report on its supermarket inquiry, and found the price of a typical basket of groceries has increased by more than 20 per cent since 2019.
The report found that low-income households spent more than a fifth of their income on food.
While prices across all grocery products have increased, the most considerable hikes were in staples such as dairy products by 32 per cent, bread and cereal items by 28 per cent and meat and seafood prices have increased by a fifth.
The price of fruit and vegetables has increased by 19 per cent between the March 2019 quarter to the June 2024 quarter.
The ACCC released the interim report after examining whether supermarket giants were dudding suppliers and ripping off customers due to a lack of competition.
In a statement on Friday, Prime Minister Anthony Albanese has condemned major supermarkets.
“Customers don’t deserve to be treated as fools by the supermarkets. They deserve better than that,” he said.
“This is an important piece of work and we will study it closely.
“My government is taking a range of actions to make sure Australians are paying a fair price at the checkout and Australian suppliers are getting a fair price for their goods.”
Assistant Minister for Competition Andrew Leigh said this was the most comprehensive inquiry they've had in 15 years.
“Businesses need to do the right thing by Australians,” he said.
“Greater competition is critical for lifting dynamism, productivity and wages growth, putting downward pressure on prices and delivering more choice for Australians dealing with cost-of-living pressures.”
The report also found that due to "excessive" prices, many shoppers were buying less food and focusing on cheaper products to stay within their budgets. Others were eating less frequently and have smaller meals, or changing their shopping habits by comparing online prices before going in store.
As a result, ACCC deputy chair Mick Keogh said Australians were “losing trust in the sale price claims by supermarkets”.
“These difficulties reportedly arise from some of the pricing practices of some supermarkets, such as frequent specials, short-term lowered prices, bulk-buy promotions, member-only prices and bundled prices,” he said.
In Australia, Woolworths and Coles contribute to 67 per cent of supermarket sales, with Aldi accounting for 9 per cent and IGA contributing 7 per cent.
The ACCC will release their recommendations in their final report due in February 2025.
This follows the ACCC launching legal action against Coles and Woolworths over allegations of misleading customers with fake discount prices.
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