Grocery prices rise faster than inflation

Tony Moore | October 11, 2007 - 5:00AM

The Australian Consumer Association - publishers of Choice Magazine - is backing a survey showing a fortnight's groceries cost a Queensland family on average $149 more than it did in 2000.

The Queensland Health survey shows healthy food prices, such as including bread, cereals, fruit and vegetables, milk, steak, chicken, rice and pasta, have increased faster (49 per cent) than the consumer price index (32.5 per cent).

In Brisbane the price of a fortnight's groceries have increased from $299 to $443, a 48 per cent increase in six years.

The price increase is worse in regional Queensland, where prices jumped by 54 per cent in Cairns, Townsville, Bowen, Emerald and Goondiwindi, and by 49 per cent in Rockhampton, Mackay, Maryborough, Dalby and Bundaberg.

Australian Consumer Association spokesman Christopher Zinn said the results would not surprise anyone who did the family shopping.

"This is not just happening in Queensland, it is happening around Australia," he said.

"We do our own basket of groceries and have noticed the same thing - that fresh fruit and vegetables have gone up a lot more than basic groceries."

Mr Zinn said the survey was "realistic" and showed an increasing price gap between fresh and processed foods.

He said while the price of bananas grabbed media attention during the North Queensland cyclones, other food prices had also jumped.

"While a lot of fuss was made about bananas going through the roof, other price rises have not been as dramatic," he said.

Mr Zinn congratulated Queensland Health for sorting out the increasing price of healthy foods.

He put the price rises down to increasing costs of production and the drought.

Queensland's Health Minister Stephen Robertson released the 2006 Healthy Food Access Basket Survey, saying the price jump was proof the drought and rising fuel prices were having an impact on grocery prices.

"It also shows families living in very remote areas of Queensland are paying up to $113 more than families in Brisbane for the same basket of food," he said.

"That's why I'm calling on Prime Minister John Howard to authorise the Australian Competition and Consumer Commission to conduct a national inquiry into food prices."

The 2006 Healthy Food Access Basket Survey compared food price movements at 47 stores through Queensland between 2000 and 2006.

The average price of the Healthy Food Basket in Queensland had risen 49 per cent in six years compared with a 32.5 per cent increase in the Consumer Price Index for food over the same period.