Key facts
- The average price of a basket of eight essential grocery items rose by 7% across Australia's four major supermarket chains between March and June.
- The total cost of the basket increased from $40.83 to $43.62.
- Strawberries were the biggest driver of the price hike, increasing by 37%.
- IGA saw the largest overall price increase at 11%, while Woolworths had the smallest at 2%.
- Aldi remained the cheapest supermarket for the essential basket and a separate healthy items basket.
Groceries have become more expensive at all four of Australia’s major supermarket chains, with the average price of a basket of essentials increasing by 7% between March and June, new analysis by consumer advocacy group Choice has found. The survey, which assessed a basket of eight common items at 104 stores, revealed the total cost of these groceries rose from $40.83 to $43.62 over the three-month period.
The largest contributor to the overall price increase was strawberries, which became 37% more expensive, rising from an average of $4.68 to $6.41. Mince, milk, and avocados also saw price increases, while apples and basmati rice became cheaper.
IGA recorded the most significant price hike, with its basket increasing by 11% to $50.42. Aldi followed with an 8% increase, bringing its basket cost to $40.10, though it remained the cheapest overall. Coles saw a 6% increase, with its basket costing $42.54, while Woolworths experienced the smallest rise at 2%, reaching $40.95.
In addition to the essential basket, Choice also surveyed a 'spotlight basket' of 10 healthy items, finding Aldi to be the best value at $28.79, followed by Woolworths ($33.52), Coles ($34.25), and IGA ($42.27).
These findings come as the Reserve Bank of Australia is expected to raise interest rates again in an effort to curb inflation. While Australia's overall consumer price index rose by 0.6% in the March-to-June quarter, food categories experienced higher inflation.
Aldi and Coles provided statements emphasizing their commitment to value, with Aldi highlighting its position as Australia's best-value supermarket and Coles noting that most of its products either stayed the same price or decreased. An IGA spokesperson stated it was difficult to comment without the full methodology but noted its stores are competitive. Woolworths was contacted for comment.
The Albanese government has funded Choice's quarterly surveys since 2024 as part of its cost-of-living measures, with two more reports planned before new anti-price gouging laws take effect on July 1.