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Australia’s cost of living crisis is now so severe that low-income people are spending a quarter of their salary on groceries, and even skipping meals to survive.
A new report from the Australian Competition and Consumer Commission also suggests that those who buy frozen peas are in financial trouble.
“Households have also told the ACCC that to reduce their grocery bills they are spending more time looking for savings, substituting fresh foods for frozen foods and cutting out non-essential items,” he said on Thursday.
But those weren’t the only sacrifices revealed in a 15-minute online video. survey of 13,000 people, so far, which will last until April 2.
A new report from the Australian Competition and Consumer Commission also suggests that those who buy frozen peas are in financial trouble.
“Some people have also reported skipping meals or sacrificing meals to adequately feed children,” the ACCC said.
“Many younger Australians and low-income households spend up to a quarter of their net income on food.”
Australians are already considered to be in mortgage stress when they spend 30 per cent or more of their salary on monthly payments – and that’s before tax.
Spending a quarter of one’s salary on grocery items, after taxes, suggests the cost of living crisis is affecting more people than just those with a mortgage, even though inflation is moderating.
The consumer regulator is examining the cost of living crisis as part of an investigation into supermarkets.
Inflation moderated in February to 3.4 per cent, putting it only marginally above the Reserve Bank’s 2 to 3 per cent target, new Australian Bureau of Statistics data released on Wednesday showed.
Australia’s cost of living crisis is now so severe that low-income people spend a quarter of their salary on groceries and even skip meals to survive (pictured, a Woolworths shopper in Sydney)
But tobacco prices soared 10.7 percent in the year to February, even before the latest excise duty increase.
Cereal-based foods remain expensive, with cereal and bread prices rising 7 percent over the year.
This was double the 3.6 percent increase in food and non-alcoholic beverage prices.
Breakfast foods are getting more expensive at the checkout, with Coles selling Kellogg’s Crunchy Nut Corn Flakes in a 640g packet for $10.
A new report from the Australian Competition and Consumer Commission has revealed that struggling consumers are now swapping fresh fruit and vegetables for frozen foods (pictured, file image).
The same money buys a 740 gram package of Kellogg’s Just Right.
Those who eat milk with their cornflakes will also take a hit: dairy prices rose 4.2 percent.
A two-litre bottle of A2 milk costs $6.90 at Woolworths, or $3.45 per litre.
Supermarket giants Coles and Woolworths have recently blamed higher production costs for shrinking product sizes, even though the price has stayed the same or increased.
This came after consumer group CHOICE revealed the extent of “counterinflation”.