A spokesperson for Coles rejected claims that the supermarket giant engaged in price gouging.

“Despite a 12-month inquiry into supermarkets, neither the government or the [Australian Competition and Consumer Commission] found evidence of price gouging,” they said in a statement.

“What’s needed are measures that tackle the real factors driving higher grocery prices, which are rising costs such as energy, fuel, labour, insurance, production, freight and distribution.”

ARA chief industry affairs officer Fleur Brown similarly said that repeated inquiries have “failed to find any evidence of supermarket price gouging”.

“The ACCC’s findings clearly state that grocery inflation has been driven higher by the cost of wages, energy and fuel,” she said.

“Yet instead of hearing how the government will address these issues, which significantly affect all Australian retailers and consumers, we unfortunately see more taxpayer-funded deflection.

“The ARA calls on [the] government to focus on policies that drive down the cost of doing business in Australia, which will have a direct impact on grocery prices and the cost of living for Australian families. We need measures that reduce red tape, increase productivity or drive down costs.”

What did the ACCC’s report find?

Earlier this month, Australia’s consumer watchdog, the ACCC, released its final report after a year-long supermarket inquiry.

While it did not release definitive evidence of price gouging, it found the market dominance of Woolworths and Coles had an “oligopolistic” effect on the broader industry and that the pair are among the most profitable supermarket businesses in the world.

It found that between 2018 and late 2021, grocery prices increased largely in line with wages, but by the end of 2022 and start of 2023, grocery prices were increasing at more than twice the rate of wage growth. Supermarket profits have increased in that time, but the major companies claim it is not a “dramatic” rise.

When it released its report, ACCC deputy chair Mick Keogh said it was “very difficult” to tell whether price gouging was happening in supermarkets.

“The profitability figures do give you some very broad picture of what’s happening, but the issue of price gouging isn’t one we were able to engage in too closely.”

— Alex Gallagher