November last year (2009) there was a article from the Oecd, informing us that Australia's food prices had increased by 41.3% since the start of the year 2000.
This is the fastest growing food prices in the world. For any country! We lead the race!
It's funny, but I don't hear a lot of complaining about this issue. People seem more upset about interest rates or petrol prices than food costs being on the march. However when we lead the race in rising food costs there has to be something wrong here.
To give you an idea of how big a qoute this is, take the following example. If you purchased 0 worth of supermarket goods in Jan. 2000 and then purchased the same goods in Dec. 2009 you would be paying 1.95.
If food prices keep going this way for the next ten years until Dec. 2019 you will be paying 9.48. Or duplicate what you paid only 19 years earlier.
Now I have no qoute with paying an extra 41.3% over a 9 year duration as long as midpoint wages go up 41.3% or more in that time.
But why in this country shouldn't we complain about the highest percentage growth in the world since 2000. Why does Australia have the highest growth in food prices?
Did anything say duopoly? Coles and Woolworths operate majority share of our supermarket budgets. They can get away with murder. And yes increasing prices year after year is right on what they are getting away with.
Sure they act like they are in competition with each other. One has a sale and the other one follows. However they like People to believe this. The real truth is that they moderately but steadily, month after month growth prices over their products while throwing in a few well publicised sales every now and again to make it look like they are trying to sell out food costs.
It's an appearance that they are trying their hardest to sell out food costs. However they have no incentive to compete hard on discounting prices. They will only hurt each others profitability. So why enter a war against each other when you can stage a fake war?
Coles new slogan: "It all counts". This tends to make you think that Coles is a value destination. It makes you believe that they are trying to lower prices. Do you believe them? Is there anything in their track article that suggests they believe it all counts? If they had been following this statement there would be no way food prices in Australia would have gone up to be The highest In The World Over The Last Nine Years.
So what can you do? Talk about the issue; bring it up with friends and family. Result your own spending patterns. Let People know that Australia has the highest rate of food prices growth for the last ten years. The more People that know the qoute the bigger the issue will become. For more great tips and a monthly newsletter go to http://www.mrhomebudget.com
Australia's Food Prices - You Must Be Joking
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