Senate inquiry demanded amid major supermarkets’ price surge during cost-of-living crisis

It is no secret that the cost-of-living crisis has been taking a toll on families worldwide. From consecutive interest rate hikes pushing up mortgage payments to rents and grocery bills rising, Australians have been feeling the pinch on their weekly budget.

In a bid to get to the bottom of the issue, the Greens have called for a senate inquiry into pricing strategies employed by Coles and Woolworths supermarkets—the notorious ‘duopoly’.


The inquiry is expected to scrutinise whether customers are being subjected to 'price gouging' during economic hardship, own brand products to market concentration, corporate profit hikes and the extraction of cost-savings from employees and consumers through automation.

The incremental surge of essential item prices and the prevalent opportunistic pricing and mark-ups by the two major supermarket chains will also be examined during the inquiry.


Screenshot 2023-12-04 082025.png
Coles and Woolworths will be subjected to a senate inquiry regarding their price hikes during the cost-of-living crisis. Image: Reddit


The senate investigation is anticipated to be established next week as Parliament sits for the final time this year, just as the Labor party expressed support for the Greens.

The initial hearings for the inquiry are said to take place in early 2024.

Greens Economic Justice spokesman Senator Nick McKim said: 'Coles and Woolworths are making billions in profits by price gouging in a cost of living crisis'.

'For too long, the big supermarkets have had too much market power. This allows them to dictate prices and terms that are hitting people hard. It’s time to smash the duopoly,' he added.


Senator McKim wants the major supermarket CEOs to front the inquiry and ‘justify their decisions’ during hard times while adding it would be a ‘critical step’ towards toppling market concentration.

‘We’ll find a way to dismantle their power and bring grocery prices down,’ he said.

‘It is about that Australians can afford to eat without being exploited and that suppliers are treated fairly.’

A spokesperson from Woolworths supermarket said they are ‘committed to offering our customers value while working with our suppliers to manage economy-wide inflationary pressures’.


‘We know Australians are feeling the strain of cost of living, and we are working to deliver relief in their weekly grocery shop,’ the spokesperson added.

‘As we start to see the rate of inflation ease, we will continue to focus on delivering savings to our customers.’

A spokesperson from Coles supermarket also shared they ‘believe all Australians should be able to put quality food on the table for their families, at a good price’.

The Coles supermarket also said that having a ‘profitable business’ just means they can continuously serve Australians and employ their 120,000 staff.

Key Takeaways
  • The Greens have called for a senate inquiry into major supermarkets, Coles and Woolworths, due to allegations of price gouging during the cost-of-living crisis.
  • The senate inquiry will examine the effects of market concentration on food prices and the supermarkets' pricing strategies.
  • The inquiry will also consider the increase in essential item prices and the prevalent opportunistic pricing and mark-ups.
  • A Coles spokesperson stated that they believe all Australians should be able to afford quality food, and having a profitable business allows them to serve Australians and employ their staff.

Have you noticed any suspicious price hikes with your regular shopping at the major supermarkets or any other retailers? Let us know in the comments below!
 
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Prices are through the roof....families struggling to buy food while the big supermarkets make billions of profit !
Everyone should stop buying Xmas presents this year....my opinion !!
 
Prices are through the roof....families struggling to buy food while the big supermarkets make billions of profit !
Everyone should stop buying Xmas presents this year....my opinion !!
I don’t I spend up on birthdays ,Xmas is too commercialised, and you are not paying for over inflated prices.
 
Have you noticed any suspicious price hikes with your regular shopping at the major supermarkets or any other retailers?

The price of 1 litre generic Coles milk increased from $1.60 to $1.70 while Woolies remained at $1.60. Strangely, the Coles price rise coincided with a change of packaging over the weekend. That equates to a 70% increase in two years. Would you jump up and down if petrol went up from $2.00 a litre to $3.40? You bet!

I predicted earlier this year that the price of generic milk will pass that of petrol by the end of 2024. I might be on track. Some brand milk already has.
 
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Have you noticed any suspicious price hikes with your regular shopping at the major supermarkets or any other retailers?

The price of 1 litre generic Coles milk increased from $1.60 to $1.70 while Woolies remained at $1.60. Strangely, the Coles price rise coincided with a change of packaging over the weekend. That equates to a 70% increase in two years. Would you jump up and down if petrol went up from $2.00 a litre to $3.40? You bet!

I predicted earlier this year that the price of generic milk will pass that of petrol by the end of 2024. I might be on track. Some brand milk already has.
I noticed a well known cornflour product has risen from $2-70 to $3-40, so what is their excuse, maybe it’s time to picket these rip off merchants.
 
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Reactions: Veggiepatch
I noticed Coles home brand ice creams went from $3.50 to $4.00. Now that's their own brand with a jump of 14%. Please explain that!
A few cents rise could be acceptable. But .50c on every single box in all the stores across Australia, that's just rude. And it's not just this product. Whenever there is a price rise it's a big jump. You add that to a regular weekly grocery tab of say 35 items and there's and extra $17.50 we're paying. And some items increased way more that.
 
Coles and Woolworths will talk their way out of it, nothing will be done. How many times have their been different enquiries and ACCC investigations into fuel pricing etc. What happens, nothing. It is laughable really.
 
I noticed Coles home brand ice creams went from $3.50 to $4.00. Now that's their own brand with a jump of 14%. Please explain that!
A few cents rise could be acceptable. But .50c on every single box in all the stores across Australia, that's just rude. And it's not just this product. Whenever there is a price rise it's a big jump. You add that to a regular weekly grocery tab of say 35 items and there's and extra $17.50 we're paying. And some items increased way more that.
4 ltr Coles ice cream use to be $4 now it is $7. That was a 75% increase.
 
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Reactions: Bunyip57 and LeahI
It is no secret that the cost-of-living crisis has been taking a toll on families worldwide. From consecutive interest rate hikes pushing up mortgage payments to rents and grocery bills rising, Australians have been feeling the pinch on their weekly budget.

In a bid to get to the bottom of the issue, the Greens have called for a senate inquiry into pricing strategies employed by Coles and Woolworths supermarkets—the notorious ‘duopoly’.


The inquiry is expected to scrutinise whether customers are being subjected to 'price gouging' during economic hardship, own brand products to market concentration, corporate profit hikes and the extraction of cost-savings from employees and consumers through automation.

The incremental surge of essential item prices and the prevalent opportunistic pricing and mark-ups by the two major supermarket chains will also be examined during the inquiry.


View attachment 36512
Coles and Woolworths will be subjected to a senate inquiry regarding their price hikes during the cost-of-living crisis. Image: Reddit


The senate investigation is anticipated to be established next week as Parliament sits for the final time this year, just as the Labor party expressed support for the Greens.

The initial hearings for the inquiry are said to take place in early 2024.

Greens Economic Justice spokesman Senator Nick McKim said: 'Coles and Woolworths are making billions in profits by price gouging in a cost of living crisis'.

'For too long, the big supermarkets have had too much market power. This allows them to dictate prices and terms that are hitting people hard. It’s time to smash the duopoly,' he added.


Senator McKim wants the major supermarket CEOs to front the inquiry and ‘justify their decisions’ during hard times while adding it would be a ‘critical step’ towards toppling market concentration.

‘We’ll find a way to dismantle their power and bring grocery prices down,’ he said.

‘It is about that Australians can afford to eat without being exploited and that suppliers are treated fairly.’

A spokesperson from Woolworths supermarket said they are ‘committed to offering our customers value while working with our suppliers to manage economy-wide inflationary pressures’.


‘We know Australians are feeling the strain of cost of living, and we are working to deliver relief in their weekly grocery shop,’ the spokesperson added.

‘As we start to see the rate of inflation ease, we will continue to focus on delivering savings to our customers.’

A spokesperson from Coles supermarket also shared they ‘believe all Australians should be able to put quality food on the table for their families, at a good price’.

The Coles supermarket also said that having a ‘profitable business’ just means they can continuously serve Australians and employ their 120,000 staff.

Key Takeaways

  • The Greens have called for a senate inquiry into major supermarkets, Coles and Woolworths, due to allegations of price gouging during the cost-of-living crisis.
  • The senate inquiry will examine the effects of market concentration on food prices and the supermarkets' pricing strategies.
  • The inquiry will also consider the increase in essential item prices and the prevalent opportunistic pricing and mark-ups.
  • A Coles spokesperson stated that they believe all Australians should be able to afford quality food, and having a profitable business allows them to serve Australians and employ their staff.

Have you noticed any suspicious price hikes with your regular shopping at the major supermarkets or any other retailers? Let us know in the comments below!
Everyone has noticed how prices have increased since Covid. Me, being a pensioner has felt this increase in prices, not just in groceries but, electricity and gas too. I lay the blame squarely at the Governments feet.
 
In case no one has noticed, Maccas have just jacked up the prices on nearly everything by 50 cents. That is a massive price jump in terms of percentage.
 
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Reactions: Veggiepatch
4 ltr Coles ice cream use to be $4 now it is $7. That was a 75% increase.
People need to boycott these price rises and only buy what’s necessary, give the freezers a miss and stick to fruit, Veges and proteins and see how long it takes to drop prices,.one can only hope.
 
  • Like
Reactions: magpie1

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