Seven households reveal grocery spending as costs rise across Australia

Families are changing shopping habits and cutting fresh food, with one spending a quarter of a disability pension on groceries.
Published

Seven Australian households have described their grocery shopping habits and costs to ABC News, revealing weekly spending from $150 to $300 and strategies to manage rising prices. Daniel, a father of two young children, spends an average of approximately $250 a week on groceries, which he tracks using a spreadsheet, making it his largest expense after the mortgage. Louisa has a weekly grocery budget of $300 for herself, her husband and a toddler, while Kirsty, a single parent of a teenage son on a disability pension, spends close to a quarter of that pension on groceries.

A recent HILDA Survey measured the average share of income going to essential goods and services and found it had risen by nearly 6% across three years. The same survey found the increase was 7.8% for single non-elderly people and 6.1% for single parents with dependent children.

One in four shoppers surveyed by consumer research company Canstar in the previous year said they had changed their shopping habits over the prior 12 months to manage costs. Canstar data also shows the majority of shoppers visit more than one store for their regular grocery shop, and Choice's basket of base items shows prices have continued to rise across all major supermarkets.

Daniel said premium steaks have largely disappeared from his household menu because of their cost. He said there are some items he will not trade down on for cost reasons, naming bread and free-range eggs, but said the household has switched to cheaper cheese. Louisa said she is buying similar products to before but that individual prices on items such as cereals, rice and meat have risen noticeably.

She said she begins at Aldi and completes the shop at Woolworths for items Aldi does not stock or for specific brands. Udita said the same spending power bought considerably more food a few years ago, and that a pack of mini Coke cans costs around $11 or $12 when not on special.

Kirsty said she has stopped buying fresh fruit and vegetables because she cannot afford food waste, and has also cut back on meat, switching to ready-made meals bought on sale and frozen. Robyn, a single parent with two primary school-aged children, holds her weekly grocery spending to $150, part of which is covered by a $15 Foodbank parcel that includes bread, flour, long-life milk, tuna, and fruit and vegetables. Robyn said buying fresh produce is not financially practical unless she can use or freeze it quickly, and that she considers an avocado a rare purchase.

Foodbank data showed 100,000 additional Australian households went without enough food compared to 2025. Households most often blamed elevated or rising living costs, including food and housing expenses, for food insecurity, with reduced or low income the second most cited reason.

The Foodbank report found interest rates' effect on household food insecurity climbed back to 2024 levels following a period of easing, and a greater share of households anticipate their financial position will deteriorate. The Reserve Bank of Australia said interest rate increases are needed to reduce borrowers' disposable income, which in turn curbs spending and lowers demand for goods and services.

Households that have already removed discretionary spending face pressure on essential grocery items, with some reducing or eliminating fresh produce and meat from their weekly shop. Higher interest rates leave borrowers with less disposable income at a time when most goods and services are becoming more expensive and real wages remain below levels of five years ago.

Reporting: ABC News

Background: ABC News, BBC

Written by Pick & Scroll News from the reporting and documents linked above.