Basket case: Grocery inflation means Woolies and Coles are selling less for more money
People can’t avoid buying food, and it accounts for more of their budget than petrol does, so grocery inflation matters enormously.
Coles reported higher price rises than Woolworths in the first three months of the year, as the two supermarkets face a world of inflation where they take in more revenue… but without selling many more groceries.
In January, February and March this year, Coles increased sales by 4.2% — but it didn’t achieve that by selling 4.2% more products. Instead, inflation propped up the number. The company reports inflation of 3.3%, meaning the volume of goods they sold was just a miserable fraction of a per cent higher than the year prior.
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