Inflation and rising grocery and food prices are adversely affecting the cost of living for 62 per cent of Australians, a new survey has revealed.
Commissioned by Savvy, the survey of 1,005 Australians shows that 62 per cent of respondents (or 12 million Australians if generalised to the entire adult population), are concerned about increasing grocery prices as part of their weekly recurring expenses.
Weekly spends already high
The survey revealed that 31.1 per cent said they spend over $100, which could mean 6.05 million Australians are spending over $100 per person each week on groceries; 26 per cent of those surveyed already spend between $76-$100 per week on groceries (or 5.1 million Australians if generalised to the entire adult population). The median spend seems to be $51-$75, with 29 per cent reporting within that band.
When it came to which age groups were most concerned about the cost of groceries, people aged 35 and over were more heavily represented, quite possibly due to family commitments, while older age groups would often be living on reduced incomes.
“The increase in food prices is spurred on by ongoing supply chain issues, the recent floods in New South Wales and Queensland, and flow-on effects from global conflicts,” says CEO of Savvy, Bill Tsouvalas.
“Higher fuel prices cascade into food prices, especially when much of our supply chain is dependent on trucks. Energy prices, which have been high for many years, also don’t help the situation. Families will need to budget for the increase in food prices as well as any shocks in the system such as the inevitable increase in the RBA cash rate, typically used to combat rising inflation.”
Tightening belts
As for what families will do in the face of rising grocery prices, 48 per cent said they’ll simply “buy less,” and 56 per cent will change to cheaper brands; 54 per cent will be more judicious with their grocery shop, only shopping during clearances or buying on-sale items.
Interestingly, 27 per cent of men surveyed said they’ll simply absorb the price increase, while only 17 per cent of women will do the same.
With prices set to rise, it could mean that harder times are ahead for Australian consumers at the checkout.
