The rise of 'price creep' is threatening the last reliable way to save on groceries, and it's not just the name brands that are affected. According to recent data from Compare the Market, even supermarket home brands have fallen victim to this phenomenon, with prices creeping upwards while the savings between generic and brand names are narrowing.
Chris Ford from Compare the Market highlights a concerning trend: while some generic branded items have seen price increases, their brand-name counterparts have remained stagnant. This is particularly evident in the case of milk, where the generic brand has increased by 55 cents (an 18.33% increase) over the past 12 months, while name brands have stayed the same. Coles, Woolworths, and Aldi increased the price of their home brand milk in April, citing increased production costs for Australian dairy farmers.
The impact of price creep is also evident in the price of bread. Generic white bread at Coles and Woolworths has increased by 10 cents (a 2.94% rise), while the home brand sliced bread costs $3.30 per 680g loaf, compared to Woolworths' Tip Top Sunblest 350g loaves for $3.90. Similarly, a box of home brand wheat biscuits has increased by 60 cents (an 11.99% rise), with the brand name option also jumping $1 year-on-year (a 16.66% price increase).
However, it's not all bad news. Some items, like generic bread eggs and multipurpose cleansers, have decreased in price. Despite this, the overall trend is concerning, with shoppers potentially missing out on significant savings.
One of the hidden dangers is 'shrinkflation', where the size of items shrinks while prices stay the same. For example, a 24-pack of toilet paper now costs $14 for 16 rolls, compared to $13 for 24 rolls last year, resulting in customers paying $1 more for eight fewer rolls. Ford warns that this trend is becoming more common, and shoppers should be cautious.
While home brands can still offer savings, consumer group Choice found that Aldi provides the most significant savings, with a total of $68.80 for 16 popular grocery items, compared to $91.65 at IGA. This highlights the importance of shopping around and comparing prices to ensure the best deals.
In conclusion, the rise of price creep is a significant challenge for those looking to save on groceries. While some savings can still be found, the overall trend is concerning, and shoppers should be aware of the potential for 'shrinkflation' to impact their purchases. It's crucial to carefully consider unit prices and shop around to ensure the best value for money.
