Cost of living curbs buying fresh food

SHOPPERS will be forced to trade off fresh food and meat for cheaper packaged groceries as the cost of living for Australian families continues to skyrocket, a leading supermarket boss has warned.

Coles managing director John Durkan issued the warning as energy bills and stagnant wages growth continue to crimp household incomes.

Speaking at a business forum hosted yesterday by the American Chamber of Com- merce in Australia, Mr Durkan said it was clear Australians were feeling the pressure of the rising costs of living which had been building for years.

Mr Durkan – who tipped an extra $200 million into price cuts for Coles customers over the past six months – noted that over the past few years, wages growth had languished.

“However, at a time when incomes are not growing much, many households are having to confront large price rises in other areas of their everyday living,” he said.

“Over the past six years, childcare costs have risen by 58 per cent, household utilities prices by 35 per cent and health and education costs by more than 30 per cent.”

Mr Durkan said he received feedback that many households were being forced to sacrifice buying fresh food, instead opting for cheaper packaged food, as they coped with mounting bills.

“There is a sizeable proportion of consumers who are being forced to devote time and effort each week to work out how they can afford to buy the essential groceries they need to feed their families,” Mr Durkas said.

“We should be concerned that many households feeling cost-of-living pressures are spending less on fresh produce and fresh meat,” he said.

An independent analysis of cost-of-living trends by Nera Economic Consulting found that cost-of-living pressures had grown across all regions, but more so in some regional areas and in particular states, including South Australia, Tasmania,

Victoria.

“In essence, these households are being forced to trade off healthier options for their families,” he said.

“At a time when we want Australian children to be happier and healthier, why should segments of the community be forced to make such a tradeoff?” he said.

Mr Durkan said it was Coles’ obligation to squeeze down shelf prices and do everything in its power to make food more affordable. Queensland and