Coles says higher grocery prices are putting Australian households under pressure and the retail giant is also feeling the impact of inflation on the costs of doing business. | MsEmmaK
Coles boss Steven Cain says household budgets will be under increasing pressure as fuel prices start to edge up, but believes food will be one of the last areas where people will cut back their spending on.
Cain said while an increase in fuel costs would be felt by consumers, spending on food was “probably near the end of things that people cut back on”.Chief executive Steven Cain said the company had seen further cost price inflation in July as the price of raw ingredients and supply chain costs flowed through to bakery goods, produce and packaged groceries.
“There are some suppliers coming back [with price requests] for a second or third time depending on their circumstances,” he said. Inflation across the supermarket came in at 1.7 per cent for the financial year, but was up 3.8 per cent in the June quarter.The cost of living crunch has led Coles to sharpen its focus on the pricing of pantry staples and its own brand products.
Capsicums have been as expensive as $15 per kilogram, but are expected to moderate to $10 per kilogram in coming weeks as supply improves, a Coles spokesperson told this masthead.“The outlook is for beef livestock pricing to moderate and this is expected to be reflected in retail pricing,” the spokesperson said.
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