Urgent warning to Woolworths customers that the price of food is about to rise even more: here’s why:
- Severe weather has affected growing conditions and the supply of fruit and vegetables
- Woolworths stock levels should return in late June if weather conditions improve
- Groceries prices will rise as inflation in the country is expected to rise in winter
Woolworths warned that fruit and vegetable prices are likely to rise as poor growing conditions will choke out supplies of essential foodstuffs – with the worst yet to come.
In an email sent to shoppers on Thursday, the supermarket giant said heavy rains and little sunlight have affected the supply and price of lettuce and berries.
The newsletter from Woolworths, fruit and vegetable general manager Paul Turner, did not mention the exact price increase – the poor supply would last for weeks.
Woolworths warned that poor growing conditions due to extremely wet weather have impacted the supply and price of fruit and vegetables (Pictured, Woolworths Brisbane)
“With winter just around the corner, the east coast is starting to look to the northern growing areas for fruit and vegetable supplies as the southern regions get cooler,” wrote Mr Turner.
“However, following continued rainfall and little sunlight in northern NSW and south-east, central and northern Queensland in recent months, the supply of fruit and vegetables has been affected.
Mr Turner said heavy rains have hampered the supermarket’s prepackaged spinach leaf salads and supplies are expected to return within four weeks if weather conditions improve.
The berry season in Queensland has been delayed due to severe weather hitting the country’s east coast – and supplies are set to pick up towards the end of June.
A lack of staple supplies in the main baskets has rocketed inflation, with the cost of products on the shelves soaring by more than 12 percent this year – and will get worse in the run-up to winter.
In a newsletter sent to shoppers on Thursday, the supermarket giant said supplies of lettuce and berries are likely to return by the end of June (stock images)
Ben Gilbert, retail analyst at investment bank Jarden, says supermarket price increases will be significant as inflation accelerates.
“The price increases are significantly greater than we expected,” said Mr. Gilbert in his survey of major retail suppliers.
A head of iceberg lettuce earns customers $5.50 – more than a McDonald’s cheeseburger or 10 packs of Hungry Jacks chicken nuggets
Further increases are planned, either a second or a first at a planned weighted rate of 7.4 percent. This paints a scenario where we could see an annual run rate of more than 12 percent through 2022,” he said.
Some groceries in Australia’s major supermarkets have already risen to 94 percent, data released last month showed that supermarkets admitted they had to pass on rising costs to customers.
Relentless rain has battered Australia’s east coast with experts warning Australians that the flood will continue well into the rest of the year (pictured, a farm is surrounded by flooding the town of Bli Bli, Sunshine Coast)
An Australian shopper is stunned by the price of crisps at his local Woolworths (pictured in Northbridge, Sydney) – as the cost of many household groceries skyrockets
Coles raised prices by more than 3.3 percent in the March quarter to pass on the high shipping costs, fuel, meat and fresh vegetables.
Meanwhile, Woolworths warned that 160 of the top 200 suppliers have requested an increase in the cost of their product, with suppliers expected to ask for a further increase over the next 12 months.
Mr Turner said there was good news for shoppers as an “excellent early season” of Hass avocados will hit the shelves.
A massive rainbomb hit the east coast of Queensland on Wednesday, causing massive storms and severe flooding.
Severe showers and possible thunderstorms are forecast for the central, southern and southeastern regions of Queensland on Thursday.
As the far west begins to dry out, the Bureau of Meteorology warns that the rain will continue to fall.
Weatherzone warned the system could dump three to five months’ worth of rain in some parts of the state.
The country could be drenched in rain and flooding for another six months as a third La Nina system is likely, making it Australia’s wettest period in nearly 50 years.
This would be the first time Australia has had three consecutive La Ninas in 22 years and it would be the fourth triple La Nina since records began in 1900 – the wettest year on record was 1974.
Why You’re Not As Rich As You Used To Be — And Even $90,000 Salaries Are Now Considered “Modest”
Australian wages are actually falling now as rising inflation eats up wage increases and threatens to trigger a rate hike two years earlier.
Women are taking an even bigger economic hit than men as the Russian invasion of Ukraine drives up gasoline prices, adding to the already high rent and mortgage stress.
The McKell Institute think tank calculated that by 2021 women across Australia would see a 1.6 percent pay cut, taking inflation into account, compared to 1.2 percent for men.
Women (pictured is a construction worker in Sydney) take an even bigger blow from rising inflation than men, as rising petrol prices, rents and mortgage payments leave little room for savings
Chief executive Michael Buckland used International Women’s Day to highlight how weak wage growth particularly hurt female workers.
“Real wages are shrinking and there is no focused plan to turn things around,” he said.
“Across Australia, both men and women are struggling as the value of their wage packages is falling in real terms.
“But this data shows that women have a much harder time doing it.”
In the year to November, average wages excluding bonuses and overtime rose just 2.1 percent, data from the Australian Bureau of Statistics shows.
By comparison, headline inflation rose 5.1 percent in March, its fastest pace in 21 years and well above the Reserve Bank’s 2 to 3 percent target.
The average full-time salary of $90,917 in Australia would now barely afford a home at an average price of $748,635 without someone in mortgage stress (Pictured is an auction in Sydney’s Paddington)
Australia’s average full-time salary of $90,917, before taxes, would now barely pay off an average price of a home.
Last year, real estate prices in Australia rose more than 22 percent – the largest increase in a calendar year since 1989.
Australia’s average home and unit price was $748,635 in April, CoreLogic data showed.
With a 20 percent down payment, a buyer would owe $598,908 to the bank.
An average full-time earner would have a debt-to-income ratio of 6.6.
The Australian Prudential Regulation Authority considers a ratio of six to be dangerous if a borrower would struggle to repay their loan.
Source: New feed