ATTENTION supermarket shoppers – price rises are imminent in aisles containing food made of wheat, sugar and dairy products.
Woolworths CEO Michael Luscombe gave the warning yesterday after revealing the company’s biggest annual profit, $2 billion, a rise of 10 per cent.
His alert comes after a period in which food prices were relatively stable, rising just 1.4 per cent in the year to the end of June, less than a third of the 4.8 per cent increase the previous year.
That low level of inflation allowed Woolies to cut the price of 4400 of the 25,000 items on its shelves. But it can’t promise a repeat this year.
It’s already absorbing cost increases in dairy products.
Mr Luscombe warned of rises in other areas. Sugar’s wholesale price hit a five-month high last week after the US eased import restrictions as users said the country was in danger of running out.
Sounds to me like just another excuse to raise the prices, regardless of what they say, the prices have sky rocketed since we started getting all these rises in electricity, rates, etc. which goes on businesses as well and is of course passed on to the consumer.