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Grocery prices: Aldi cheapest as Coles discounts overtake Woolworths

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Australians are being urged to shop around to find the cheapest groceries as the latest taxpayer-funded data reveals which supermarkets had the lowest prices.

Aldi was the cheapest supermarket by a wide margin over the September quarter, according to the latest edition of Choice’s prices survey, while some Coles’ prices dropped since March.

The price of the grocery basket that Choice samples (including sales) increased at Woolworths.

“Woolworths has slipped from second to third place in this wave of research,” Choice chief executive Ashley de Silva said.

“The Woolworths basket cost $68.37, compared to $64.93 in March.

“Coles, however, came down in price with our basket of 14 items costing $66.22, compared to $68.52 in March.”

Overall IGA was the most expensive supermarket, with its basket costing $78.95 based on data from 27 locations across the country.

Choice sent shoppers to 104 supermarkets across the nation – including Aldi, Coles, Woolworths and IGA – to record prices for 14 common groceries as part of an initiative funded by the Albanese government.

That means the study is not an indication of how supermarket prices are shifting in dollar terms across the economy, but it does reflect the effects that discounts can have on grocery costs.

“Buying items on special can make a difference to overall grocery costs, and reinforces the benefits of shopping around where possible,” de Silva said.

“A discount on tea bags at Coles during our survey period was a major influence on the results of this survey.”

Supermarket specials have been in the news after the ACCC sued both Coles and Woolworths for allegedly making misleading claims about their specials, claiming ‘illusory’ discounts.

The ACCC claims have done further harm to the reputations of both major supermarkets after several years dealing with the public backlash over rapid increases in grocery prices.

De Silva said labels in supermarkets are “often confusing” and make it “difficult to tell if there is a true discount on offer or not”.

“Our second quarterly supermarket survey highlights the importance of clear, simple labelling, that leaves the customer in no doubt about whether a product is actually on special,” she said.

One way shoppers can try and cut through the confusion is to focus on unit pricing, which compares how much products cost based on quantity, such as by the gram or by the litre.

But ultimately the best way to save on groceries is to shop between supermarkets where that is convenient, and to be flexible with the types of food you purchase each week.

Choice’s data demonstrates that – the difference in costs between the cheapest supermarket, Aldi and IGA was a whopping $21.

Meanwhile, the gap between Coles ($66.22) and Woolworths ($68.37) is relatively small compared to the difference between both the major supermarkets and Aldi ($51).

“Swap expensive cuts of meat for cheaper alternatives, consider frozen fruit and veg, and don’t be afraid to try house-brand products,” Choice said.

“We often find these ranges outperform more expensive options at all supermarkets.”

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