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Savvy's 2022 survey of 1005 Aussies learns how inflation and increasing grocery prices are affecting the cost of living in Australia.
- 62% of Australians are concerned about increases in the price of food and groceries
- 31.1% said they spend over $100 per person per week
- 48% said they will simply buy fewer groceries if inflation continues to rise
- 56% intent to switch to cheaper brands
A new survey of 1,005 Australians commissioned by Savvy shows that 62% of respondents, or twelve million Australians when extrapolated to the entire adult population, are concerned about rising grocery prices as part of their weekly recurring expenses.
Weekly spends already high
The survey revealed that 31.1% said they spend over $100, which could mean 6.05 million Australians are spending over $100 per person each week on groceries.
26% of those surveyed already spend between $76-$100 per week on groceries, or 5.1 million Australians if generalised to the entire adult population. The median spend seems to be $51-$75, with 29% reporting within that band.
When it came to which age groups were most concerned about the cost of groceries, people aged 35 and over were more heavily represented, quite possibly due to family commitments, while older age groups would often be living on reduced incomes.
Bill Tsouvalas, Savvy Managing Director & home finance expert;
“The increase in food prices is spurred on by ongoing supply chain issues, the recent floods in New South Wales and Queensland, and flow-on effects from global conflicts,” says CEO of Savvy Bill Tsouvalas.“Higher fuel prices cascade into food prices, especially when much of our supply chain is dependent on trucks. Energy prices, which have been high for many years, also don’t help the situation. Families will need to budget for the increase in food prices as well as any shocks in the system such as the inevitable increase in the RBA cash rate, typically used to combat rising inflation.”
Tightening belts
As for what families will do in the face of rising grocery prices, 48% said they’ll simply “buy less,” and 56% will change to cheaper brands. 54% will be more judicious with their grocery shop, only shopping during clearances or buying on-sale items. Some may consider putting more and more on the credit card or even pay-day loans. The problem becomes that people are paying off multiple high interest commitments at the same time. An alternative is to consolidate these with a single lower interest personal loan, which cal allow people to get on top of their debts.
Interestingly, 27% of men surveyed said they’ll simply absorb the price increase, while only 17% of women will do the same.
With prices set to rise, it could mean that harder times are ahead for Australian consumers at the checkout.
For more information, contact Adrian Edlington – [email protected]
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