It is anticipated that the cost of a typical shopping basket will continue to remain exorbitantly high.
However, in one bit of positive news, it probably won’t get more expensive at the checkout in the New Year.
“I do think supermarkets are very sensitive to public opinion and reputation,” Mortimer said.
“I think we’ll probably see stabilisation.
“I think we’ll see long-term discounting, prices locked down, rolled back, whatever they say.
“Potentially some strong price promotions – we might see those being 40 per cent off your chocolate bars, 30 per cent off your soft drinks.
Aussie city ranked as second most cost-effective in the world
“I think price stability, price promotion is the best we can hope for.”
Food prices rose 3.3 per cent over the 12 months to the September 2024 quarter, unchanged from the previous quarter, according to the ABS.
Fruit and veg in particular went up due to unfavourable growing conditions.
Other food items that will see price hikes include chocolate, attributed to exceptionally high cocoa prices, and eggs, which have increased by 9% compared to last year due to supply shortages caused by ongoing concerns about bird flu.
Mortimer said that as well as stocking up on items when they are on offer, apps such as Frugl can help guide you to the best deals.
When it comes to other essentials like clothes, what Donald Trump does in the USA could have short-term benefits for Australians, Mortimer says.
For instance, if tariffs are imposed on China, it could potentially lead to an excess of inventory in their factories, prompting the superpower to sell off the surplus at discounted rates.
“That’s going to be really interesting,” he said.
