Are you paying more for groceries than people in the UK, Ireland, and New Zealand? See the shocking price comparison!
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As we navigate the aisles of our local supermarkets, checking off items from our grocery lists, many of us can't help but feel the pinch of rising prices. It's a common topic of conversation among friends and family: just how much more are we paying for our weekly shop compared to a year ago, or even compared to our international neighbors?
Well, dear members of the Seniors Discount Club, it's time to shed some light on this pressing question. A recent study by researchers at Edith Cowan University has compared the prices of common grocery items between leading supermarkets in Australia, the UK, Ireland, and New Zealand, and the findings are quite revealing.
When it comes to the overall cost of a basket of groceries, Australia ranks third most expensive, trailing behind New Zealand. However, when we factor in the average wages of workers, Australia jumps to second cheapest. This is a crucial consideration, as it gives us a more accurate picture of the affordability of groceries relative to our income.
The study, conducted by Associate Professor Flavio Macau and Dr. Alex Wang, analyzed the prices of 44 grocery items between April and May. They aimed to determine how Australia's supermarket landscape, dominated by the Coles and Woolworths duopoly, compares to similar markets overseas.
In Australia, food prices at Coles and Woolworths have risen by 9.6 percent over the past 12 months to April. Despite this, the price difference between the two major supermarkets is negligible, with a $300 shop differing by less than a dollar between them. This suggests that while there is competition, it may not be as fierce as we'd hope to keep prices down.
Looking abroad, the researchers found that in New Zealand, a similar duopoly exists with Pak'n'Save and Countdown holding 70 percent of the market. In the UK, Tesco and Sainsbury's account for 42 percent, while in Ireland, Dunnes and Tesco hold a 45 percent share. Interestingly, prices varied more significantly overseas between supermarkets compared to Australia, indicating potentially more competition and choice for consumers.
So, who comes out on top in terms of price alone? The UK takes the lead with the lowest prices, followed by Ireland, Australia, and then New Zealand as the most expensive. But when we adjust for wages, the picture changes, with Australia moving up to second place behind the UK.
This data suggests that while we may grumble about the cost at the checkout, Australians are not alone in facing high grocery prices. Comparable countries are experiencing similar struggles, with both Australian and UK shoppers spending about 13 percent of their wages on groceries.
Amidst these findings, there's been action taken against Australia's supermarket duopoly. Coles recently posted a $1.1 billion profit for the 2023-24 financial year, while Woolworths saw a significant drop in profit. The Australian Competition and Consumer Commission (ACCC) has launched legal action against both supermarkets, accusing them of deceptive discounting practices.
The federal Greens have called for the duopoly to be broken up, citing Coles' profits as evidence of price gouging. However, Dr. Macau warns that such radical solutions might be counterproductive, potentially leading to higher prices due to increased costs.
Instead, he suggests a strategy that empowers consumers with smart shopping practices and encourages strategic purchasing as a more immediate and effective solution to managing the cost of living.
So, what does this mean for us, the savvy seniors of Australia? It's a reminder that while we may not have control over the market forces that dictate prices, we can take control of our shopping habits. By being informed, comparing prices, and making strategic choices, we can stretch our dollars further.
We'd love to hear from you, our valued members. Have you noticed a significant increase in your grocery bills? Do you have any tips for keeping costs down? Share your experiences and advice in the comments below, and let's help each other navigate these challenging times with wisdom and thriftiness.
Well, dear members of the Seniors Discount Club, it's time to shed some light on this pressing question. A recent study by researchers at Edith Cowan University has compared the prices of common grocery items between leading supermarkets in Australia, the UK, Ireland, and New Zealand, and the findings are quite revealing.
When it comes to the overall cost of a basket of groceries, Australia ranks third most expensive, trailing behind New Zealand. However, when we factor in the average wages of workers, Australia jumps to second cheapest. This is a crucial consideration, as it gives us a more accurate picture of the affordability of groceries relative to our income.
Research shows Australia has the third-highest grocery prices among Australia, the UK, Ireland, and New Zealand but ranks as the second cheapest when factoring in average wages. Credit: Shutterstock
The study, conducted by Associate Professor Flavio Macau and Dr. Alex Wang, analyzed the prices of 44 grocery items between April and May. They aimed to determine how Australia's supermarket landscape, dominated by the Coles and Woolworths duopoly, compares to similar markets overseas.
In Australia, food prices at Coles and Woolworths have risen by 9.6 percent over the past 12 months to April. Despite this, the price difference between the two major supermarkets is negligible, with a $300 shop differing by less than a dollar between them. This suggests that while there is competition, it may not be as fierce as we'd hope to keep prices down.
Looking abroad, the researchers found that in New Zealand, a similar duopoly exists with Pak'n'Save and Countdown holding 70 percent of the market. In the UK, Tesco and Sainsbury's account for 42 percent, while in Ireland, Dunnes and Tesco hold a 45 percent share. Interestingly, prices varied more significantly overseas between supermarkets compared to Australia, indicating potentially more competition and choice for consumers.
So, who comes out on top in terms of price alone? The UK takes the lead with the lowest prices, followed by Ireland, Australia, and then New Zealand as the most expensive. But when we adjust for wages, the picture changes, with Australia moving up to second place behind the UK.
This data suggests that while we may grumble about the cost at the checkout, Australians are not alone in facing high grocery prices. Comparable countries are experiencing similar struggles, with both Australian and UK shoppers spending about 13 percent of their wages on groceries.
Amidst these findings, there's been action taken against Australia's supermarket duopoly. Coles recently posted a $1.1 billion profit for the 2023-24 financial year, while Woolworths saw a significant drop in profit. The Australian Competition and Consumer Commission (ACCC) has launched legal action against both supermarkets, accusing them of deceptive discounting practices.
The federal Greens have called for the duopoly to be broken up, citing Coles' profits as evidence of price gouging. However, Dr. Macau warns that such radical solutions might be counterproductive, potentially leading to higher prices due to increased costs.
Instead, he suggests a strategy that empowers consumers with smart shopping practices and encourages strategic purchasing as a more immediate and effective solution to managing the cost of living.
So, what does this mean for us, the savvy seniors of Australia? It's a reminder that while we may not have control over the market forces that dictate prices, we can take control of our shopping habits. By being informed, comparing prices, and making strategic choices, we can stretch our dollars further.
