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https://www.theguardian.com/business/2026/mar/09/woolworths-trumpeted-eight-consecutive-quarters-of-price-declines-heres-why-that-claim-doesnt-pass-the-pub-test>
"It sounds like great news for households.
Average grocery prices have recorded “eight consecutive quarters of
year-on-year price declines”, Woolworths declared at its half-year financial
results.
It’s a big claim given that most shoppers intuitively know that grocery prices
have been rising, with data tracked by Savings.com.au showing a trolley load of
Woolworths groceries that cost $292 two years ago now costs $315.
Putting promotions to one side, it’s difficult to find many products at
Woolworths that are cheaper now than they were eight quarters ago.
The price of Weet-Bix (375g) is up 14%; Coca-Cola (1.25 litres) up 13%;
Vegemite (150g) up 5%; beef mince (500g) up 30%; and free range eggs (large)
are up 19%.
Bags of washed potatoes, cheese slices, white sugar and long grain rice were
among the few products that
Guardian Australia could identify as having
stayed the same or recorded price falls during that period.
Indeed, the food and non-alcoholic drink category of the consumer price index
was one of the largest contributors to annual inflation in 2025, up 3.4%,
according to the Australian Bureau of Statistics. It was also a significant
contributor the year before.
Interestingly, the ABS uses Woolworths scan data, as well as data from Coles
and other retailers, to work out grocery price changes, creating an apparent
discrepancy with the supermarket’s claim of falling prices.
Given that Woolworths is Australia’s biggest supermarket chain, it has a
significant bearing on the ABS calculations.
It turns out that when Woolworths says average prices have declined, it does
not actually mean that an identical basket of groceries costs less than it used
to.
As Graham Cooke, head of consumer research at
Finder, puts it: “It is the
corporate equivalent of a hotel chain claiming ‘average stay costs’ are
dropping because guests have stopped booking suites and are now squeezing into
budget rooms.”"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
