Inflation Bites as Australians Say They’re Paying More for Groceries: New Survey

With inflation resulting in higher prices, the average amount Autralians are paying at the checkout has risen significantly in 2022

Last updated on July 19th, 2022 at 03:25 pm by Adrian Edlington

Savvy’s second 2022 cost of living survey, of 1003 Australians, learns what impact inflation and higher prices are having at the checkout. 

  • 33% of those surveyed said their grocery bills have increased by between 11-20%
  • Average cost of a grocery shop estimated at $168.50
  • 21% of women say their grocery bill has increased by between 21-30%
  • Prices set to rise again on 27th of July
Australian woman choosing green vegetables at the supermarket veggie section

Another survey on the cost of living commissioned by Savvy has revealed that half of Australians are paying between 11 and 30% more for their groceries since the start of 2022.

The survey of 1,003 respondents showed that 30% of participants said the cost of their grocery shop has increased by 6-10% since the beginning of this year.

33% say that their grocery bills have increased by 11-20%, while 17% say that their bills have surged by a whopping 21-30%.

21% of women say their grocery shop has increased by between 21%-30%, while only 12% of men reported the same.

The average cost of a weekly grocery shop, when meat, vegetables, dairy, bakery, frozen foods, beverages, and staples such as rice and flour are considered, is $168.50; rising to $189.10 when alcohol is added to the mix.

Inflation Bites as Australians Say They’re Paying More for Groceries: New Survey InfographicInflation Bites as Australians Say They’re Paying More for Groceries: New Survey Infographic

Grocery prices have surged amid a general 5.1% inflation in the economy.

Some fruits and vegetable prices have skyrocketed due to a “perfect storm” of low planting rates and frosty temperatures. Heads of iceberg lettuce have been seen to sell for $11.99 – well above the $2.80 average.

The peak body for Australian produce, AUSVEG says that fruit and vegetable prices have more than doubled due to a similar uptick in the costs of production.

PRICE PAIN TO PERSIST

Prices are set to rise once again from 27th July, prompted by a 50 point inflation rate rise due this week, according to Daily Mail Australia.

This is due to an unprecedented level of price rise requests – five times the usual rate – from suppliers, according to Coles Group CEO Steven Cain, as told to the Australian.

Pressure on Australian families is only set to grow as the RBA increased the official cash rate by 0.5%p.a to 1.35%p.a this Tuesday.

Economists have indicated that the cash rate will likely hover around 2.5%p.a. by the end of this year.

More than one million Australians are relying on Foodbank services to feed their families, according to The New Daily.

Graph showing how much Australian's grocery bill had increased in 2022

Bill Tsouvalas, Savvy Managing Director & personal finance expert;

“These are families with jobs – and they are struggling to get food on the table,” says Bill Tsouvalas, CEO of Savvy. “With so many people saying that their grocery bills are rising, the most vulnerable among us no longer have food security. This is unprecedented in a so called ‘bread basket’ country such as ours. The worry is that Australians are taking on higher levels of unsustainable debt in the form of payday loans or credit cards, which only serves to kick the can down the road. It’s not a long-term solution. For some, a sensible option would be to consider a debt consolidation loan.”

If you are experiencing acute mental stress due to finances, contact Beyond Blue on 1300 22 4636 or Lifeline on 131 114.

For more information, contact Adrian Edlington – [email protected]

Sources:

Savvy – 2022 Cost of Living Survey – 2 (n = 1003) 

https://www.abs.gov.au/census/guide-census-data/census-dictionary/2021/variables-topic/housing/mortgage-affordability-indicator-maid

https://ausveg.com.au/resources/economics-statistics/veggie-stats/ 

https://www.dailymail.co.uk/news/article-10978785/Coles-Woolworths-set-increase-prices-days-Daily-Mail-Australia-exposed-prices.html?ci=kAvV3qAX1f&cri=sb_AFKSOIv&si=mIsznWj1izHY&xi=77d91f20-cee4-482e-a65e-d6b2045f841f&ai=10978785

https://www.news.com.au/finance/rba-expected-to-lift-interest-rates-by-half-a-per-cent/video/4d4ca03c7164f7dc7c924547080d322b

https://thenewdaily.com.au/finance/consumer/2022/06/15/foodbank-cost-of-living/

About Savvy

Savvy is one of Australia’s largest online financial brokers, focusing on personal and commercial financial products. Founded in 2010, the firm has seen rapid growth, a testament to their provision of market leading rates and reaching customers with the latest in media and technology. Savvy is a proud supporter of Kids Under Cover, a charity assisting homeless and at-risk youth to strengthen their bonds to community and education. Savvy was named one of BRW’s fastest growing companies in 2015.