How much grocery prices have risen in the past three months

The cost of groceries are accelerating quickly at Australian supermarkets, but one major chain is faring better than its biggest competitor.

Grocery prices at Woolworths increased by 4.3 per cent in the three months to the end of March, analysis from UBS reveals.

It’s a huge leap from a 1.4 per cent rise in the previous quarter.

Meanwhile, prices at Coles have risen 3.2 per cent over the same period.

Dry grocery inflation at Woolworths is well above Coles due to the different strategies the two chains use to manage food inflation.

CEO of the Australian Food and Grocery Council, Tanya Barden, says costs were being absorbed prior to the pandemic, but that’s now changed.

“All manufacturers of food and groceries are facing pressure and this is starting to flow on,” she told Stephen Quartermain and Emily Power, filling in for Ross and Russel.

“It’s affecting pretty much everything that’s made and sold in the supermarkets.”

Ms Barden’s advice: “shop around”.

Press PLAY below to hear more about supermarket price hikes