TRANSCRIPT
The Greens want to lead a federal parliament inquiry into what they say is excessive pricing or "price gouging" by major supermarkets, as Australia struggles with living cost pressures.
Greens senator Nick McKim says the inquiry will scrutinise the impact of market concentration on food prices and the pattern of pricing strategies employed by the supermarket duopoly, referring to Australian grocers Woolworths and Coles.
Senator McKim also wants an inquiry to assess the rise in essential item prices, the validity of discounts offered, and the inflation of profits during economic hardship.
Speaking to the ABC Senator McKim says the inquiry is an important one especially for regional consumers.
"We want to use this inquiry to examine the price setting practices of Coles and Woolworths. We want to use this inquiry to deliver greater transparency around the supply side. In other words how and how much they pay for the goods and services that they then sell to Australians. And we want to understand the impact that the concentration of market power in this sector which is extraordinary has, because ultimately competition is one thing that can bring prices down, but there is a massive lack of competition particularly in regional and rural Australia where often, you're either shopping in one of the two major supermarkets or the corner shop and there is often not much in between."
But Nationals leader David Littleproud says a parliamentary inquiry would take too long when action was needed now to address the cost of living crisis facing Australians.
He has pushed for the Australian Competition & Consumer Commission to immediately investigate whether price gouging was occurring.
Woolworths and Coles, together make up about two-thirds of Australian grocery sales.
In response to calls for an inquiry - a spokesperson for Coles released the following statement.
"Coles is always exploring ways to reduce prices on the products we sell and is not immune to the increased cost of doing business. Construction costs, energy prices, the cost of logistics and packaging have all risen."
A Woolworths spokesperson also responded in a statement.
"Woolworths is working to deliver relief. As we start to see the rate of inflation ease, we will continue to focus on delivering savings to our customers."
These shoppers say they've noticed a change in their shopping bill over the past few years.
"Now days it's out of hand. My partner and I come shopping once a week and we easily spend $350. Four or five years ago it was probably $200 very comfortably. It's very subtle the small increments, but after a couple of years, it's out of proportion now. Vox 2: Certain things I bought three of four months ago are now four or five dollars dearer. That does add to the bill. My average shop was $150 -200 now we are $250 to $300 so it has now almost doubled."
The Reserve Bank of Australia has hiked interest rates 13 times since May 2022 in an effort to rein in inflation, increasing living cost pressures nationwide.
Coles and Woolworths both posted profits of more than $1 billion in the past financial year.
