Warning as Aussies brace for 75% grocery bill hike

With grocery bills set to skyrocket this Christmas, millions of Aussies are being warned not to make this spending mistake.

More than three quarters of Aussies are bracing for their grocery bill to increase by up to 75 per cent this Christmas, new Aldi research found. Around 7 per cent expect their bill to more than double.

Put into context, Aussies spent about $14.16 billion at the supermarket in September, Australian Bureau of Statistics data found. That’s about $535 per person. So, an increase of 75 per cent works out to an extra $401 per person.

Do you have a story to share? Contact tamika.seeto@yahooinc.com

Aldi found the vast majority of shoppers (80 per cent) were now looking for ways to stretch their budget further, with about a quarter (23 per cent) considering switching their supermarket to save.

“Although half of the population are still planning to celebrate big this Christmas, they’re doing so with one eye fixed on their back pocket,” Aldi managing director Jordan Lack said.

Coles and Woolworths are fighting for shoppers looking for savings, with the supermarket giants both dropping prices on a range of grocery items yesterday.

RELATED

• Coles leaps in as Woolworths drops price of more than 400 items: When you can get cheaper groceries

• Woolworths vs Coles: Price of popular meat dropped to lowest since 2013 - but which is cheapest?

• How Aldi's top 8 products compare with value of Coles and Woolies

‘Debt spiral’ warning

With bills set to soar, Aussies are being warned against putting these extra costs on credit cards - or they could risk falling into a “debt spiral”.

One in five Aussies - or 4.2 million people - were planning to turn to credit to fund their Christmas spending, new Finder research found. Credit cards were the most popular option (11 per cent), followed by buy now, pay later (7 per cent) and personal loans (3 per cent).

Finder money expert Rebecca Pike said using a credit card for Christmas costs was only a good move if you were confident you could make repayments on time.

“If you rely too much on credit to fund your holiday spending, you could find yourself in a debt spiral that lasts well into the new year,” Pike told Yahoo Finance.

“If you’re left with $1,479 in debt, which is how much the average person is expected to spend on festive expenses this season, it could end up costing you almost $150 or more in interest alone.”

Pike encouraged Aussies to stick to their shopping list this Christmas, stock up on staples when they are on sale and compare prices for big-ticket items.

Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to our free daily newsletter.