A recent report from consumer advocacy group Choice, funded by the government, reveals that grocery prices at Woolworths have increased over the past year, while similar items at Coles and Aldi have seen price declines.

The quarterly report, which tracks the average price of groceries in Australian supermarkets, has been monitoring these changes since March 2023.

The report found that the price of 14 common grocery items decreased at both Coles and Aldi since the initial report was issued.

Specifically, between March and December of the previous year, Aldi's average basket price remained relatively stable, with a minor decrease of 0.3%.

Conversely, Coles experienced a more substantial reduction; the price of its grocery basket on special declined by 2.5% within the same timeframe.

In stark contrast, Woolworths reported a price increase for the same basket of items, rising by 3.7% when including specials, from $64.93 to $67.34. When analyzing prices without specials, Woolworths saw a smaller increase of 1.5%, moving from $68.58 to $69.63.

The prices at Coles, both with and without specials, showed a decrease—down by 2.5% when including specials and 2.1% without them.

The grocery basket at Coles dropped from $68.52 to $66.84 with specials, and from $69.33 to $67.84 without specials.

Aldi's pricing remained consistent at $51.51 and $51.36, reflecting minor changes throughout.

Details from the report indicate a noticeable divergence in pricing strategies between Coles and Woolworths, highlighting a shift in their competitive landscape.

Choice CEO Ashley de Silva commented on the widening gap between the two giants, which increased from 75 cents to $1.79 over the reporting period, marking the most pronounced difference observed.

To gather this information, Choice utilized a network of 'mystery shoppers' across 104 supermarkets in 27 locations nationwide, recording prices for the same 14 grocery items in December.

Additionally, IGA stores were included in three surveys and also revealed a lower average price compared to June.

This report comes amidst increased scrutiny of Australian supermarkets, following a recent inquiry by the Australian Competition and Consumer Commission (ACCC).

The findings indicated that Australian supermarkets rank among the most profitable globally, with limited incentive for price competition.

The inquiry did not definitively identify price gouging but noted rising earnings margins, particularly at Woolworths.

The ACCC issued 20 recommendations aimed at promoting greater transparency in pricing and promotions to better inform consumers.

After launching legal action against Coles and Woolworths for misleading discount pricing claims, the ACCC continues to advocate for required transparency in supermarket pricing.

De Silva emphasized the importance of these recommendations, which could enhance consumer confidence by allowing better-informed shopping decisions.

Although the federal government has expressed support for these proposals in principle, it has yet to commit to their implementation.

Meanwhile, Woolworths, Coles, and Metcash are currently reviewing the ACCC's findings and recommendations.