Australia's Prime Minister, Anthony Albanese, expressed skepticism over the justifications provided by supermarket giants Coles and Woolworths for their pricing policies. He highlighted the perceived discrepancy between what the supermarkets pay farmers and the prices charged to consumers. Despite both companies denying allegations of price gouging—defined as charging excessively high prices for essential goods or services during an emergency or crisis—Albanese emphasized the public's awareness of the supermarkets' substantial profits, with Coles making over $1 billion and Woolworths reporting a $1.6 billion profit in the last financial year. Woolworths claimed a commitment to delivering savings as inflation rates ease, while Coles argued that its net profit after tax was only 2.6%, emphasizing efforts to keep food prices low and ensure fair compensation for farmers.
The government is considering potential intervention and making the food and grocery code mandatory if supermarkets fail to pass on lower prices. Treasurer Jim Chalmers is also contemplating a competition watchdog inquiry, empowering the Australian Competition and Consumer Commission to compel supermarkets to disclose their produce purchase prices. A separate Senate inquiry, initiated by the Greens, aims to investigate allegations of price gouging by major supermarkets. Amid concerns about the cost of living, the government is exploring relief measures aligned with its commitment to combat inflation. Cabinet discussions are ongoing, with a focus on targeted cost-of-living relief that does not exacerbate inflation. The issue of price gouging will be a central point in these discussions, with ongoing inquiries seeking to address concerns about fairness and transparency in the retail pricing practices of major supermarkets.