What will happen to grocery prices by 2025 during the cost-of-living crisis?

Unfortunately, it seems that Australians will continue to face high prices for groceries in the coming years. Experts predict that prices will remain steep in 2025, making it difficult for people to cope with the ongoing cost of living crisis. The cost of a shopping basket is expected to stay eye-wateringly high, which is not good news for struggling families.

However, there is a glimmer of hope as experts also predict that grocery prices will not increase any further in the New Year. This is a small relief for consumers who are already feeling the pinch. Additionally, there may be some good news in store for shoppers as the ACCC (Australian Competition and Consumer Commission) is currently conducting an investigation into Australian supermarkets. Their findings, which will be released in early 2025, could lead to more discounts and promotions from the major supermarket chains.

Gary Mortimer, a retail expert and professor at Queensland University of Technology, believes that despite these inquiries, we should not expect a significant decrease in food prices. He explains that for prices to change, other costs such as fuel would need to decrease as well, which is unlikely to happen. The ACCC has also been questioning the pricing strategies of major supermarkets such as Aldi, IGA, Coles, and Woolworths, and will be presenting a final report to the government in February. This could lead to some changes in their pricing policies.

Mortimer also mentions that supermarkets are very aware of public opinion and their reputation, so they may make efforts to stabilize prices and offer more long-term discounts. However, he believes that price stability and promotions will be the best we can hope for. According to the ABS (Australian Bureau of Statistics), food prices have already risen by 3.3% in the past 12 months, with a significant increase in the cost of fruits and vegetables due to unfavorable growing conditions. Other food products such as chocolate and eggs have also seen price increases due to factors like record high cocoa prices and supply shortages caused by bird flu concerns.

Mortimer suggests that consumers can use apps like Frugl to help them find the best deals and save money on groceries. He also notes that the actions of US President Donald Trump could have some short-term benefits for Australians, despite warnings of a potential trade war from the Australian Treasurer, Jim Chalmers. For instance, if Trump imposes tariffs on China, it could lead to an oversupply of goods, which may result in discounted prices for Australian consumers.

In conclusion, while the cost of living crisis and high grocery prices continue to be a challenge for Australians, there may be some small improvements in the near future. The ACCC's investigation and the actions of major supermarket chains could potentially lead to more discounts and promotions for consumers. In the meantime, being savvy and using resources like apps and taking advantage of sales can help individuals and families save money on their essential purchases.

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