Aussies brace for rising grocery prices

Half of Australians expect to spend more on groceries over the next three months as the rising cost of living bites, according to a survey by consumer intelligence platform Toluna.

Why it matters

That survey was carried out before the country’s central bank raised interest rates earlier this week for the first time in more than a decade. And observers anticipate further increases later in the year as part of efforts to tackle inflation. So consumers can expect to spend more on groceries for rather longer than just three months.

Takeaways 

• Almost two thirds say how they spend their money has been affected by rising costs, B&T reports.
• The sector seeing the greatest impact is grocery items, cited by eight in ten.
• Other sectors highlighted include eating out (54%), ordering takeaway (50%), buying clothes (53%) and beauty and skincare products (48%).
• Consumers are switching brands and shopping around to find better deals. 

Key quote

“Businesses will do well to ensure that communication with customers over the coming months largely focuses on price and value for money. It’s important that businesses evolve the way they position and market themselves in a way that aligns with current consumer sentiment” – Sej Patel, country director of Toluna, Australia & New Zealand.

Sourced from B&T, BBC, Smart Company [Image: Somi Jaiswal on Unsplash]