Australian Inflation: Due to rising inflation in Australia, customers are turning to cheap goods

Australia has been facing high inflation for the past several decades. In such a situation, the country's largest supermarket saw that people are now turning towards cheap goods. At the same time, after the accounting results for the year released on Thursday, Brad Banducci, CEO of Australia's largest supermarket chain Woolworths, said that consumers are turning their attention to cheaper goods apparently due to inflation. Banducci made it clear that inflation is affecting the consumers in every way, due to which the change in their behavior can also be seen clearly.

Woolworths' biggest competitor, Coles, made it clear in its annual audit results that some customers are looking for cheaper alternatives to protein or turning to packaged products because of the cost of beef. For example, canned tomatoes are cheaper than fresh tomatoes. It was observed that after the company's annual financial statements, prices increased by about 3.6 percent in the three months to the end of June. According to Australian records, this year's Bureau of Statistics, food prices have risen faster than inflation of 6.1 percent in June since 2000.

It has been said in a report that consumers are choosing cheaper alternatives than expensive goods. Such as cutting down heavily on protein, fresh vegetables and fresh meat, and consuming cheaper supermarket products. James Graham, chairperson of Coles, the second largest company, said it was not appropriate to comment immediately in the changing business landscape. At the same time, Graham said that amid rising inflation, it is necessary to ensure affordable rates for consumers. On the other hand, both the large companies said that increasing supply chain pressures and rising transportation costs are the major reasons for inflation. At the same time, he said that the situation has also worsened due to conditions like floods and drought, due to which the prices have increased sharply. At the same time, the supermarket has stabilized the price to retain the consumers.

In such a time, Super Market Coles has stabilized the prices of more than 1,100 hundred items used every day and Woolworths has stabilized the prices of more than 400 hundred items. Even in such an era, both companies registered a huge increase in sales during this period. It is reported that in the financial accounts of 2021-22, there was an increase of 4.5 percent in the sales of Woolworths and 2 percent in the sales of Coles.