Supermarkets told to pass on savings at the checkout

Supermarkets have been put on notice to pass on savings when meat and food prices drop.

When wholesale prices go down, the cost of items at the checkout should drop as well, Treasurer Jim Chalmers says.

The government is reviewing competition laws to help people doing it tough ā€œin the aisles of our supermarkets right around Australiaā€.

ā€œWe are concerned that when the price for meat and fruit and vegetables at the farm gate goes down, we want to see the price of those goods go down on the supermarket shelves as well,ā€ he told reporters in Brisbane on Monday.

ā€œIf the supermarkets are buying it cheaper, they should be selling it cheaper, too.ā€

The treasurer is in contact with the consumer watchdog, which monitors prices across the economy and is set to speak with the ACCC again this week.

ā€œThis is a fairly regular topic of conversation, how we make sure that weā€™ve got the monitoring arrangements right,ā€ Dr Chalmers said.

Shoppers were frustrated but had nowhere else to go, consumer spending expert Graeme Hughes said.

ā€œConsumers have little power to vote with their feet due to the lack of competition,ā€ he said.

Nationals Leader David Littleproud wants the Australian Competition and Consumer Commission to launch an inquiry into the prices of everyday goods at supermarkets.

ā€œIf Labor had initiated the investigation, then the ACCC would have given the government solutions before Christmas for so many Australians doing it tough,ā€ he told AAP.

A Senate inquiry has already been set up but hearings wonā€™t begin until February.

ā€œIt makes more sense to have the professionals with the expertise and tools to investigate supermarkets, rather than a bunch of politicians,ā€ Mr Littleproud contended.

Coles has defended its prices, saying theyā€™re set by the market and also depend on seasonal conditions as well as supply and demand.

Woolworths said it was always working to strike the right balance to ensure access to high quality produce and giving suppliers a fair market price.

But Opposition Leader Peter Dutton attacked the government for promising Australians they would be better off under Labor.

Labor campaigned on the increasing price of everyday items under the coalition outside ā€“ and inside ā€“ grocery stores during the 2022 federal election.

ā€œThe cost of food is up under this government, the cost of gas, the cost of electricity and every other item under the budget at the moment is putting pressure on families,ā€ Mr Dutton said.

ā€œThe prime minister is out there saying that heā€™s now asking the Treasury and finance (department) to come up with ideas about how they can address peopleā€™s cost of living pressures ā€“ thatā€™s what he promised to do before the election.ā€

The government is focusing on taming inflation and boosting wages to make goods more affordable.

Ā 

Dominic Giannini
(Australian Associated Press)

0

Like This