Grocery price spikes forecast as months-long freeze ends

Australians are staring down the barrel of a sudden groceries price spike, adding a further edge to the cost-of-living crisis in 2023.

The major supermarkets Coles and Woolworths imposed a price freeze on numerous products in the middle of last year, offering shoppers a level of certainty when filling a trolley.

But Coles' price freeze is set to end on January 31, while Woolworths' has already expires, meaning hundreds of items will again see their dollar value up in the air.

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The Sydney Morning Herald reported that both Coles and Woolworths said they were committed to continue helping shoppers through pricing initiatives.

This could signal grocery prices being a key battleground between the supermarket giants in 2023.

But further interest rate rises could see grocery prices rise yet higher.

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Retail analysts have revealed that in the past 12 months alone, fruit and vegetable prices in Australia have risen by 16 per cent.

Bread and cereal prices are up by 10 per cent.

There were warnings through last year that tumultuous weather, including repeated flood events on the east coast, could have a knock-on effect on prices, particularly when fruit-growing areas were inundated.

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