Groceries: what's up, what's down

The latest survey of grocery prices shows you'll have to look harder than ever for bargains, in fact, you may have to try a different city.

The Australian Bureau of Statistics' tracking of national grocery prices shows not only huge increases, but also that it is far more expensive to shop in certain cities than others, for exactly the same items.

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Historically, Melbourne has had a reputation for great shopping and good prices, Sydney's reputed to be the expensive city, while Brisbane has had the affordable lifestyle.

But according to these new figures, things aren't what they used to be.

A trolley of 51 items in Melbourne cost $9.75 more than last year, in Sydney that same trolley cost $10.60 more, Brisbane jacked up by $13.10.

That's up to $680 extra we've had to pay this year.

Stephen Ogden-Barnes from the Australian Centre for Retail Studies at Monash University said "We're not yet at a stage whereby legally or morally retailers have to offer the same prices for products in all cities."

Mr Ogden- Barnes also says competition keeps prices down, and,"Where you find the most retailers is where you find the most competition."

There is also the two horse race issue.

"The major 2 retailers do fight pretty hard for the consumer dollar, do we have the same degree of competition here as in other countries? No," Mr Ogden-Barnes said.

So, which city is easiest on the wallet?

Surprisingly, Sydney has the cheapest groceries overall, especially red meats, cheese, rice, potatoes and eggs.

But Sydney's a little more expensive for some items like fresh chicken, butter, bananas, tomatoes and baked beans.

The second cheapest is Brisbane, but unexpectedly, not for fresh meats.

And defying its reputation, the most expensive overall, is Melbourne, where consumers are slugged more for most staples: milk, cheese, bread, cereal, bacon, potatoes, eggs, sugar, coffee, toilet tissue and more.

Around the nation most prices are climbing.

On average, bread is up another 5 cents, sugar 23 cents, instant coffee 27 cents, baked beans 14 cents, rice 5 cents, pet food 20 cents, a case of 24 bottles of beer $1.10. And virtually all meat is through the roof, it has increased 62 cents to $1 a kilo.

The good news is that a few prices have dropped. In all states, on average, milk is down 12 cents, butter 10 cents, bananas 34 cents, potatoes 17 cents, tomatoes $1.0 and dishwashing detergent down 20 cents.

So, the best way to rein in those rising prices is to buy up big on discounted goods, and don't waste a thing.

Stephen Ogden-Barnes explained, "There is no point paying good money for food then throwing it away. Food waste is a big problem here in Australia."