Coles grappling with food inflation but expects conditions to improve

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Coles grappling with food inflation but expects conditions to improve
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Coles ups profit, dividend as food inflation jumps | MsEmmaK

Coles says increased grocery prices are putting Australian households under pressure and the retail giant is also feeling the impacts of inflation on the costs of doing business.

The inflationary environment has made the supermarket up its focus on the prices of everyday staples and home brands, having recently moved to lock the price of 1,168 products until January 31, 2023. Cain said external suppliers have been approaching the company to request price increases for products but that the business was equally working with big brands to lock in reasonable long-term pricing where possible.“There are some suppliers coming back [with price requests] for a second of third time depending on their circumstances,” he said.

The business noted the inflationary environment meant it was also feeling the pinch within its own operations as price rises were felt across the board.

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