Inflation Also To Blame For Food Price Hike

ABC.net.au
The head of the Australian Competition and Consumer Commission (ACCC) says drought and other agriculture reforms are contributing equally to food price inflation.

He says the food inflation rate should be squarely blamed at the lack of competition between Australia's two major supermarket retailers, Coles and Woolworths.

"I have no doubt that it is the duopoly at play. The reality is we in Australia have one of the most highest concentrated supermarket sectors in the world," he said.

But Graeme Samuel, the chairman of the ACCC, says there are other factors at play than simply a lack of competition between supermarkets.

"The drought and the sorts of issues that we've had to deal with in agriculture in this country, particularly over recent years," he said.

However, Professor Zumbo says whether it is fresh food or packaged goods, the price hike is across the board.

"Their dominance is clearly in the packaged sector but also they're getting growing dominance in the fresh food and vegetable sector," he said.

"They're extending their dominance in liquor, they're extending their dominance in petrol.

"If you look across all these sectors that Coles and Woolworths are involved in, over time prices are creeping up in all those sectors."