A Choice national survey of grocery prices in Coles and Woolworths has found residents of Geelong, Victoria, and the central coast of NSW enjoy the cheapest basket of goods in the country, while consumers in Bunbury
Western Australia pay up to 11 per cent more.

The independent price survey found that a basket of 35 items, including bread, rice and bananas, varied in cost from $123.15 in Geelong to more than $136 in Hobart and Bunbury, south of Perth.


Shoppers in NSW, Qeensland, the ACT, Victoria and South Australia paid $125-128 for an average
basket of groceries from the two major chains compared with those in the Northern Territory, Tasmania and Western Australia, who paid $133-135.

The reasons for higher prices in some areas were a result of less competitive pressure, higher transport costs and reduced economies of scale, Choice said.

For the first time, Choice included fresh food in its price survey - bananas, chicken breasts and tomatoes - and found prices were markedly lower in areas with greater population and competition.

In NSW Woolworths stores, the price of chicken breasts ranged from $8 per kilo in Sydney's outer suburbs to $13/kg in Wagga Wagga.

In NSW, tomatoes were $1.78/kg in Tuggerah and almost $4/kg in Dubbo, while bananas ranged from $1.95/kg in Belmont to $4.48/kg in Dubbo.

Choice sent undercover shoppers to 145 supermarkets in 24 cities around the nation including Coles, Woolworths/Safeway, Aldi, IGA and FoodWorks.

The figures show that nationally the price difference in a basket between Coles ($127.67 and Woolworths ($126.87) was negligible. A comparable basket of Aldi home brand products cost 25 per cent less at $94.30.
The independents IGA ($142.68) and FoodWorks ($154.73) were most expensive.

"The presence of Aldi in the eastern states provides more competition to Woolworths and Coles, which encourages the big two to price more keenly," said Choice spokesman Christopher Zinn.

"By buying items that were on specials the basket price was about $10 cheaper but it's generally the suppliers who have to wear the cost, which can disadvantage smaller players. Fresh food prices vary a lot so it pays to shop around."

The Choice report says Australia was unique amongst the 30 nations of the OECD for having a rate of food price inflation that had been consistently above the overall inflation rate for the past decade.

Since the last survey in 2007 of specific brands, packaged rice went up by almost 26 per cent, dog food by 22 per cent and pasta spirals by 19 per cent. But the cheapest available middle rasher bacon and sliced white bread both dropped by about 11 per cent.

Choice is campaigning for a fairer deal for consumers at the checkout and wants grocery prices to be more transparent. The consumer group has published downloadable form letters that consumers can send to major chains asking them to make in store prices available online.

"We are also suggesting consumers look critically at specials and multi-buys offers to see if they offer genuine savings. Shoppers should take advantage of unit pricing to get the best deal and give local greengrocers, bakers, butchers and delis a go," said Zinn.