Australians are grappling with the highest grocery costs in five years, with families now paying significantly more for their weekly shop. The average weekly bill for a family of four has climbed by 11%, marking the sharpest rise since 2018. As prices continue to climb, shoppers are adjusting their habits, seeking new ways to cut costs.
This surge in grocery prices comes as inflation remains relatively low, raising questions about the underlying causes of the increase. For many households, this sharp rise is starting to bite, with essentials such as dairy, fruits, and vegetables seeing some of the biggest jumps. Experts are urging consumers to consider their shopping strategies carefully in response to the growing financial pressures.
Rising Costs Across the Board
According to Canstar Blue’s supermarket survey, the average weekly grocery spend for an Australian family of four has increased by 11%, from $216 to $240. This equates to an annual rise of approximately $3,000, taking the yearly grocery expenditure to $12,480. The survey, which included responses from 2,800 Australians, found that the higher costs span a range of items, from pantry staples to household goods.
Canstar Blue spokesperson Eden Radford explained that while some price increases were expected, the magnitude of the rise surprised many. She said that customers are feeling they are “getting less value” for their money, highlighting the broader concern among Australian families. Despite a slight easing in overall inflation, grocery prices continue to climb due to higher fuel and storage costs, which supermarkets pass onto consumers.
Although inflation has decreased slightly, the Australian Bureau of Statistics (ABS) reports that underlying inflation still stands at 2.7% for the year ending 30 June. This suggests that while general price pressures may have eased, specific sectors like groceries remain heavily impacted by persistent cost increases.
Changing Shopping Habits to Cope
In response to the rising costs, Australians are changing how and where they shop. Canstar Blue’s survey revealed that over 80% of shoppers have modified their purchasing behaviours to manage rising prices. Many are opting for frozen goods instead of fresh produce, as these items tend to be less expensive and have a longer shelf life.
Additionally, a growing number of shoppers are visiting multiple supermarkets to hunt for the best deals, with over 61% of respondents now frequenting two or more stores each week. This shift in behaviour highlights the ongoing strain on household budgets as Australians adjust to the new grocery cost landscape.
The cost of groceries has become a central concern for many, with reports showing that location can also influence prices. According to CHOICE, households in Tasmania, for example, are facing higher bills compared to those in the Northern Territory, further illustrating the geographical impact on grocery prices.
