Here at the SDC, we make sure our members are on top of the latest news regarding prices of groceries as part of our mission to provide you with fresh information on bargains, deals, discounts, and of course, price hikes.

We previously reported about the looming price increase for 2022 and provided you with some insights on how the SDC can help you with regard to this.

So, it is not surprising that fresh reports on commodity prices suggest that food prices are predicted to rise 2 to 3 per cent this year.

Woolworths Group disclosed in their recent report that the supermarket had seen higher sales but lower profits in recent operations.

Woolworths Group said that while sales have been higher in recent operations, profits had been lower. Credit: Joel Carrett/AAP.​

The supermarket giant reported that sales increased up to 8 per cent ($32 billion) but net profits came in at only $795 million, down six per cent.

It was said that sales of food remain strong at the start of the year, increasing up to 5 per cent for the first seven weeks of 2022.

However, as COVID-related absenteeism and supply chain issues keep on impacting the industry, the group said that they were spending more money on protecting staff and customers from the COVID-19 wave, including regularly testing workers for the virus.

Speaking to 7NEWS, Woolworths Chief Executive Brad Banducci said that it had been a challenging time for the supermarket group with COVID-related difficulties and Big W closures.

“This has been the most challenging seven months and I feel bad because we actually said that a year ago but this time our costs have really gone up,” he said.

Mr Banducci also insisted that inflation caused grocery prices to jump to about two to three per cent higher.

“We expect inflationary pressures to continue to intensify due to industry-wide cost increases,” he said.

“It is inevitable prices will increase.”

The Woolworths executive also disclosed that while we are expecting to see price hikes on food items in the coming months, prices of some products will experience much higher increases compared to other products.

It was divulged that red meat had experienced the highest inflation over the past year.

Red meat experienced the highest inflation in their prices. Credit: Mick Tsikas/AAP.​

Mr Banducci said: “The most expensive thing that’s changed has been red meat.”

“Both beef and lamb have become incredibly expensive and we all notice that they become almost a bit of a luxury item."

“That said, pork prices have stopped going up and certainly chicken prices are holding.

“So red meat is becoming more expensive, but there are opportunities for families to buy alternative forms of protein that are more affordable.”

While most items seem to be affected by inflation, some fruit and vegetable items — avocados and green apples in particular — have observed low prices.

“There’s been a lot of good growing season and a lot of extra supply coming on,” Mr Banducci said.

“We’ve been selling avocados at $1.50, which is fabulous because it’s such a superfood.”

“And apples are a real everyday item and there is great value on them right now. So there are some great deals to be had on the fresh side of the business.”

 

[Ricci]

Don't you just love the way that they put the word "only" before the words $795 million profit.

 

[Possum Lover]

Oh that word 'only'. We recently saw a specialist for 10 minutes and the receptionist said to us 'that will be only $250.00'. ($75 back from Medicare). What do you mean 'only'???

 

[Lizzy]

Don't you just love the way that thy put the word "only" before the words $795 million profit.

When you think of the thousands employed whether supplying the goods or actually selling them, including store maintenance and up keep. It is not such a huge amount. Compare to other large enterprises, not so good.

 

[Ricci]

When you think of the thousands employed whether supplying the goods or actually selling them, including store maintenance and up keep. It is not such a huge amount. Compare to other large enterprises, not so good.

wasn't really saying anything about the size of the profit, just the use of the word only. It is used so often these days as if to say the amount specified is just chump change. Also I would imagine that the amount of profit is after all provisions have been deducted, hence it is net profit and not gross profit..

 

[Chrisalis]

When you think of the thousands employed whether supplying the goods or actually selling them, including store maintenance and up keep. It is not such a huge amount. Compare to other large enterprises, not so good.

All the overheads are deducted before the profit is obtained. So "only" is truly a joke.

 

[WendyP]

Oh that word 'only'. We recently saw a specialist for 10 minutes and the receptionist said to us 'that will be only $250.00'. ($75 back from Medicare). What do you mean 'only'???

Might be only for them!!!

 

[Lizzy]

All the overheads are deducted before the profit is obtained. So "only" is truly a joke.

What about profits that go to the shareholders, many of which are superannuation funds. If people invest to enable us to have supermarkets that supply our food from all over the world, should they not make a profit. Especially super funds which is ordinary workers. Do you know anybody who works for no reward.