Australian Food Prices Rise 3% as Box Divvy Questions Checkout Costs

Sydney — Australian food and non-alcoholic beverage prices rose 3% in the year to August, but community food network Box Divvy says its own pricing data points to a far smaller increase, raising questions on what is driving costs at supermarket checkouts.

Box Divvy’s analysis of products included in CHOICE supermarket price comparisons found its prices increased by just 0.5% over the past year.

Prices for basic foods in the comparison fell 4% percent over the same period and 2% during the latest quarter.

Box Divvy Co-founder, Anton van den Berg, said the organisation was not experiencing broad-based increases in supplier costs that would explain the level of price increases facing consumers.

“We’re simply not seeing broad-based increases in our cost of food,” van den Berg said, pointing to weak demand and lower farm-gate prices for some produce and meat.

The price differences are evident in several everyday products.

Box Divvy said its beef mince was about 9% cheaper than a year ago, while chicken breast was about 10% cheaper, with a further 8 to 9% reduction expected in early October because of strong supply and weak demand.

Van den Berg said food prices naturally fluctuate because of seasonality, weather and changes in supply and demand, but argued that movements in underlying costs should be reflected more clearly in what consumers ultimately pay.

“When inflation rises, there can be an assumption that higher prices at the checkout simply reflect higher costs all the way through the supply chain,” he said.

The comments come against the backdrop of scrutiny of Australia's supermarket sector.

The Australian Competition and Consumer Commission's Supermarkets Inquiry found that ALDI, Coles and Woolworths were among the most profitable supermarket businesses compared with international peers, while average product margins had increased over the five financial years examined.

The inquiry also recommended greater transparency around supermarket pricing, promotions and supplier arrangements.

Since July 1, 2026, Coles and Woolworths have been subject to new excessive-pricing rules, under which the ACCC can consider factors including the cost of supplying products and what constitutes a reasonable margin when assessing whether prices are significantly excessive.

Van den Berg said consumers were justified in questioning how changes in costs were passed through the supply chain.

“If our costs are stable or come down, our members should see that reflected in what they pay,” he said.

Box Divvy, which operates across New South Wales, the Australian Capital Territory, Victoria and Queensland, has more than 400 community hubs and 16,000 members. Its members order fresh produce, meat and groceries through a three-day ordering cycle before collecting them from local hubs.