Food prices are going up but what about the 'How Low Can You Go' shopping lists?
The most recent ABS data indicates food prices have gone up 4.8% over the twelve-month period to September. Is this the case with the most basic food essentials within the shopping lists for How Low Can You Go?
Let's compare the two major supermarkets' prices from June 2023 to what they are today:
| Prices June 2023 | Prices February 2024 | Change as a percentage* | Budget | |
|---|---|---|---|---|
| Bachelor plan first fortnight | $57.35 - $57.75 | $54.40 - $59.90 | -5.14% - 3.6% | $70.00 |
| Bachelor plan second fortnight | $55.90 - $58.95 | $60.35 - $61.65 | 7.65% - 4.47% | $70.00 |
| Hard-Core Week One (family of 3-4) | $83.65 - $86.40 | $82.50 - $86.50 | -1.38% - 1% | $90.00 |
| Hard-Core Week Two (family of 3-4) | $74.45 - $76.10 | $76.55 -$77.90 | 2.19% - 1.75% | $90.00 |
| Hard-Core Week Three (family of 3-4) | $80.00 - $82.14 | $83.60 - $87.60 | 4.4% - 6.4% | $90.00 |
| Hard-Core Week Four (family of 3-4) | $71.70 - $81.70 | $72.60 - $75.70 | 1.25% - -7.3% | $90.00 |
| Hard-Core Week Five (family of 3-4) | $56.95 - $62.80 | $64.50 - $63.99 | 13.25% - 1.9% | $90.00 |
The shopping lists, on average, have increased 1.25% in seven months. While this is less than the 4.8% increase indicated by the ABS, we are not comparing 'apples with apples'. The ABS data was from September 2022 - September 2023 and we do not know what items were in the trolley that the ABS was measuring.
While 1.2% average increase seems minimal, it isn't. Any time you have less than $5.00 as a buffer it doesn't take much to push you over your limit on 'bare bones' essentials. Week One and Week Three of the Hard Core Plan are close to the $90.00 limit.
There are two main reasons for this. Firstly, it's Summer. As discussed in an earlier post, there are less opportunities to bulk buy pulses in one-kilogram packets. This adds up, resulting in double the expenditure on dried beans, for example. I discuss ways around this in the December 10 post.
Another reason is the increased cost of fresh vegetables. I particularly noticed this with zucchini and cabbage. Perhaps it is because they are winter vegetables or perhaps because of recent cyclone activity (affecting my local grocers because I live near Cairns). Hopefully, these increases do not impact most of you.
As discussed in 'How Low Can You Go', shopping lists are prioritised so whatever your budget, you are getting the most nutritional bang for your buck. Most of the final items contribute to the two desserts each week. If the shopping lists go to the wire for Week one and Week three of the Hard Core Plan, it is only going to be for the first time around and you might have to skip desserts. By the second time around you will still have some items in your pantry that will go another 5 weeks at least. This means you have less to purchase and can slowly start getting ahead.
Alternatively, you can swap out those expensive vegetable suggestions for other vegetables that are in season and discounted. Bulk (not weight) is important so look for similar volumes.
Next Tuesday we find out if the Reserve Bank of Australia will increase cash rates again. Even if you don't have a mortgage, this is our best indication of whether prices are going to continue to go above 3% inflation. We should all have our fingers crossed.
Kimberley Gillan, 2024
Photo: Raquel Martenez Unsplash.com