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# Your Woolworths shop now costs 8.5 per cent more than a year ago
- URL: https://www.bushletter.com/your-woolworths-shop-costs-8-5-per-cent-more-than-a-year-ago/
- Published: 2026-08-31T03:45:00.000Z
- Updated: 2026-08-31T03:44:59.000Z
- Description: Official inflation figures say grocery prices are cooling. The shopping trolley tells a different story. A tracked basket of 20 identical Woolworths items cost $232.02 in July 2026, up from $213.89 in March 2025, a rise of $18.13 or 8.5 per cent.
- Author: Editor
- Tags: Business, Australia, Woolworths

![Vikram Singh](https://res.cloudinary.com/dz77sb7j1/image/upload/v1774262610/bushletter/authors/vikram-singh.png)

By **Vikram Singh** · 2026-08-31

TLDR

A tracked basket of 20 Woolworths grocery items rose $18.13 to $232.02 between March 2025 and July 2026, an 8.5 per cent increase that is more than double the official food inflation rate of 3.2 per cent. The ACCC gained new excessive-pricing powers over the major supermarkets from 1 July 2026.

KEY TAKEAWAYS

01The 20-item Woolworths basket climbed from $213.89 to $232.02, an 8.5 per cent rise over 16 months.

02Official ABS food inflation over the same window sat at 3.2 per cent, less than half the basket increase.

03ACCC powers to act on excessive pricing at Coles and Woolworths took effect from 1 July 2026.

04Woolworths told the ASX in April 2026 that average prices excluding tobacco fell 1.0 per cent year on year.

05Shoppers are switching to frozen goods, bulk buying and replacing meat with lentils to manage costs.

## The gap between the shelf and the headline number

Official inflation figures say grocery prices are cooling. The shopping trolley tells a different story. A tracked basket of 20 identical Woolworths items cost $232.02 in July 2026, up from $213.89 in March 2025, a rise of $18.13 or 8.5 per cent.[\[1\]](https://www.abc.net.au/news/2026-08-31/grocery-prices-up-more-pain-expected-at-supermarket-check-out/107093756?ref=bushletter.com) The Australian Bureau of Statistics put food and non-alcoholic beverage inflation at 3.2 per cent over the same window.[\[2\]](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-35-year-july-2026?ref=bushletter.com)

The ABS measures a broad, weighted index across thousands of products and retailers. A consistent basket at a single chain captures something the index cannot: the cumulative price movement a loyal Woolworths shopper actually faces at the checkout.

## What the chain says versus what the data shows

Woolworths told the ASX in April 2026 that average prices excluding tobacco fell 1.0 per cent year on year in its third quarter, driven by price investments and promotions.[\[4\]](https://www.woolworthsgroup.com.au/content/dam/wwg/investors/asx-announcements/2026/3058199.pdf?ref=bushletter.com) The internal framing and the basket tracking point in opposite directions, and which products sit inside the promotional window shapes everything.

University of Sydney retail academic researcher Lisa Asher said the pressure falls hardest on workers whose pay has not kept pace. "Wages are not catching up and, as a result, you're really feeling the pinch when you get to the check-out," Asher said.[\[1\]](https://www.abc.net.au/news/2026-08-31/grocery-prices-up-more-pain-expected-at-supermarket-check-out/107093756?ref=bushletter.com)

## How households are adapting

Canstar spokesperson Eden Radford said shoppers are adjusting their habits in measurable ways. "They're doing things like bulk buying, going frozen where they can, shopping around, and even doing things like replacing meat with things like lentils," Radford said.[\[1\]](https://www.abc.net.au/news/2026-08-31/grocery-prices-up-more-pain-expected-at-supermarket-check-out/107093756?ref=bushletter.com)

## The regulator watching from 1 July

From 1 July 2026 the ACCC holds powers to monitor Coles and Woolworths for excessive pricing under the new Food and Grocery Code prohibition.[\[3\]](https://www.accc.gov.au/media-release/accc-to-monitor-supermarket-compliance-with-new-excessive-pricing-prohibition?ref=bushletter.com) The ACCC's supermarkets inquiry interim report, released in September 2024, had already documented pricing and competition concerns across the major chains.[\[5\]](https://www.accc.gov.au/inquiries-and-consultations/finalised-inquiries-and-monitoring/supermarkets-inquiry-2024-25/interim-report?ref=bushletter.com)

The ACCC's monitoring programme is the first formal test of the excessive-pricing prohibition, and both chains are now inside its scope. The next round of basket tracking will show whether the new powers move shelf prices at all.

SOURCES & CITATIONS

1. [Grocery prices up, more pain expected at supermarket check-out](https://www.abc.net.au/news/2026-08-31/grocery-prices-up-more-pain-expected-at-supermarket-check-out/107093756?ref=bushletter.com)
2. [CPI rose 3.5% in the year to July 2026, ABS](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-35-year-july-2026?ref=bushletter.com)
3. [ACCC to monitor supermarket compliance with new excessive pricing prohibition](https://www.accc.gov.au/media-release/accc-to-monitor-supermarket-compliance-with-new-excessive-pricing-prohibition?ref=bushletter.com)
4. [Woolworths Group Q3 FY26 ASX announcement](https://www.woolworthsgroup.com.au/content/dam/wwg/investors/asx-announcements/2026/3058199.pdf?ref=bushletter.com)
5. [ACCC Supermarkets Inquiry 2024-25 interim report](https://www.accc.gov.au/inquiries-and-consultations/finalised-inquiries-and-monitoring/supermarkets-inquiry-2024-25/interim-report?ref=bushletter.com)

FREQUENTLY ASKED QUESTIONS

How was the Woolworths basket calculated?

A researcher tracked the price of the same 20 grocery items at Woolworths in March 2025 and again in July 2026, comparing the total cost each time. The basket rose from $213.89 to $232.02 over that period.

Why does the basket result differ from official food inflation?

The ABS Consumer Price Index measures a broad, weighted average across thousands of products and multiple retailers. A fixed basket at one supermarket chain captures cumulative price changes on specific items a regular shopper buys, which can diverge significantly from the national average.

What can the ACCC actually do under the new excessive-pricing rules?

From 1 July 2026 the ACCC can monitor Coles and Woolworths for compliance with the excessive-pricing prohibition in the Food and Grocery Code. The precise enforcement mechanisms and thresholds are set out in the Code and the ACCC's monitoring programme.

![Vikram Singh](https://res.cloudinary.com/dz77sb7j1/image/upload/v1774262610/bushletter/authors/vikram-singh.png)

[Vikram Singh](https://bushletter.com/author/vikram-singh/?ref=bushletter.com)

Vikram Singh writes about banking. He follows where money actually moves, from the strategy set in head office to what changes on a customer's phone.