Australian groceries more expensive compared to foreign goods
Australians are believed to be paying much higher costs for supermarket goods in comparison to other countries. This suggestion circulated as a result of an international survey conducted by 7News.
7News compared the prices of basic items acquired in an average weekly shop to discover the costs in Australian supermarkets are ranging between 20 to 50 per cent more than those in distant cities like Paris and London. The factors that were considered in the survey are: the “milk war” between consumer groups, supermarkets and dairy producers; rising cost of living influences news; and everyday family agendas.
Price wars waged by Australian supermarkets against each other continue while daily consumers are reaping the benefits of these. Last month, Acting Prime Minister and Treasurer Wayne Swan confirmed savings for millions of consumers as a result of the “supermarket milk war” despite warnings that insistent product discounting threatens the viability of the dairy industry.
Choice magazine’s Ingrid Just says, "Price wars are keeping some of the key staples down which is assisting consumers, but at the end of the day it's the total costs of the basket.”
Independent MP Nick Xenophon, who has railed against milk war and market dominance of supermarket heavies Coles and Woolworths, says that Australians are being 'ripped off'. He states that the only way to cut down prices for consumers is to break down the supermarket duopoly dominating the industry and restricting shoppers.