With the Australian Bureau of Statistics set to release their March Quarterly Consumer Price Index report in April, there is intrigue stirring whether inflation will continue to drop.
In December 2022, the ABS recorded a high 7.8% inflation rate. Since, inflation has fallen to 3.4% in the December 2023 quarter, though is still higher than the Reserve Bank of Australia’s ideal inflation rate.
Inflation can be a dire problem for society, making money less valuable and requiring households to spend more on goods than they otherwise would during lower inflation periods.
This comes as Aussies have begun to feel the pinch at supermarket checkouts nationwide. Heading to your local supermarket to stock the pantry or fridge has become the new source of financial uneasiness. With a market dominated by Coles and Woolworths, Australians are practically forced to endure mind-blowing price hikes in order to feed families.
The solution to reversing inflationary growth, however, is a double-edged sword, especially for mortgage holders. The RBA controls inflation by increasing the cash rate to encourage less household spending, ultimately dropping the inflation rates.
The ABS will release the March quarter in the upcoming month, showcasing the inflation rates calculated by the CPI. With supermarkets claiming to keep food prices in line with inflation, a steady and consistent decrease in inflation may peel back a potential cover, exposing what could be apparent price gouging by the two big supermarket giants.
11 categories are investigated in the CPI goods and services basket. These are food and non-alcoholic beverages, alcohol and tobacco, clothing and footwear, housing, furnishings, household equipment and services, health, transport, communication, recreation and culture, education, and insurance and financial services.
Despite these categories displaying a drop and a predicted continual drop in inflation, households are still feeling the punch of expensive, necessary goods and services.
The Post compared the top three supermarket chains, Woolworths, Coles, and ALDI, to find out how to save extra on the weekly grocery shop. While Woolworths and Coles were generally comparable, ALDI was consistently less expensive. Proving that there is a new player working its way into the supermarket duopoly club.
As Coles and Woolworths boast jaw-dropping profits while millions of Aussie families struggle, it begs the question of what is really going on. Why does ALDI, a far less established supermarket chain compared to Coles or Woolies, seem to be the only option that factors in the financial needs of its customers?
For example, 500 grams of beef mince would cost $6.50 at Woolworths and Coles, but only $5.79 at ALDI. A packet of potato chips while $4.80 at Woolworths and Coles, was $2.89 at ALDI. There was a significant difference between each respective store’s homebrand orange juice prices per litre – $3.13 at Woolworths, $2.25 at Coles, and $1.06 at ALDI.
On top of ridiculous petrol prices, the rental crisis, and home loan pressures, cautious grocery spending is a reality. Finding cheaper like-options, looking at the catalogues for sales, and removing frivolous spending becomes essential to staying afloat. While finding cheaper prices is tough, these results are clear that it’s possible.
Inflation may be steadily decreasing but for many struggling households and families, not soon enough.
