Population growth: 2 million more people for Perth

[IWC2006]

Population growth is good for Perth residents as they pay the most for groceries and possibly other goods because of its tiny population and isolation from the major cities in Oz.

Perth's groceries among nation's most pricy CHALPAT SONTI
November 5, 2009
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Perth has the most expensive groceries in Australia.

It's official - Perth shoppers pay more for their groceries than those in other mainland state capitals throughout Australia.

While it's not the first time Perth has won the unwanted title, the Australian Bureau of Statistics data for September, released yesterday, comes in the middle of the battle to extend retail trading hours.

That battle - at present stalemated - has been marked by a variety of surveys from different interest groups. But the ABS figures are the first independent ones released since Premier Colin Barnett tried to extend trading hours to 9pm weeknights in the metropolitan area.

Advertisement: Story continues belowThe statistics show the total cost of the 51 items surveyed to be $320.72 in Perth, about $8 more expensive than the next most expensive capital, Adelaide.

The ABS is careful to warn against drawing detailed conclusions from the data. Its basket of goods includes those used in the make-up of its CPI index.


But its data shows Perth consumers pay more for many basics than elsewhere.

These include butter, breakfast cereal, flour, steak, lamb legs and loin chops, chicken, bacon, salmon, oranges, bananas, potatoes, tinned peaches, eggs, sugar, coffee, tomato sauce and tinned pet food.

However, despite the apparent high prices you think you pay in Perth bars, beer and whisky drinkers still fork out less than those in Adelaide, which lives up to its name of Wowserville.


The average price of food in WA (September 2009)

Milk (2 litre, whole): $3.21

Cheese (500g packet, sliced): $5.51


Butter (500g): $4.61

Bread (white loaf, sliced 650g-750g): $3.42

Biscuits (dry, 250g packet): $2.38


Breakfast cereal (525g box, corn based): $4.00


Flour (2kg, self raising): $3.97


Rice (1kg): $2.96


Roast beef (1kg): $11.12


Rump steak (1kg): $19.91


T-bone steak (1kg, with fillet): $20.44


Chuck steak (1kg): $10.84


Lamb leg (1kg): $10.97


Loin chops (1kg): $19.99


Forequarter chops (1kg): $10.48


Pork leg (1kg): $8.17


Pork loin chops (1kg): $15.16


Chicken (1kg, whole fresh): $6.24


Bacon (250g packet, middle rashers): $ 6.61


Beef sausages (1kg): $6.65


Salmon (210g can, pink): $3.71


Oranges (1kg): $3.28


Bananas (1kg): $3.79


Potatoes (1kg): $2.65


Tomatoes (1kg): $3.38


Carrots (1kg): $1.71


Onions (1kg): $2.37


Peaches (825g can): $3.78


Pineapple (450g can, sliced): $2.08


Peas (500g packet, frozen): $2.02


Milk chocolate (200g block): $3.56


Eggs (1 doz): $4.53


White sugar (2kg): $2.89

Strawberry jam (500g jar): $3.34


Teabags (180g packet): $3.89


Instant coffee (150g jar): $8.67


Tomato sauce (600ml bottle): $2.40


Margarine (500g, polyunsaturated): $3.23


Baked beans (420g can): $1.54


Baby food (110g jar): $1.19


Laundry detergent (1kg): $5.58


Dishwashing detergent (450ml): $3.46


Facial tissues (170 pack): $2.10


Toilet tissue (8 x 180-sheet rolls): $6.82


Pet food (400g can): $1.37


Unleaded petrol (1 litre): $1.22


Full-strength beer (24 x 375ml bottles, case): $42.05


Low-alcohol draught beer (285ml glass, public bar): $3.55


Full-strength draught beer (285ml glass, public bar): $3.73


Scotch (30ml nip, public bar): $5.93


Toilet soap (2 bar pack): $4.26


How WA compares with the rest of Australia (September 2009)

The cost of the ABS baskets in each state capital:

Perth: $320.72


Sydney: $300.17


Melbourne: $309.41


Brisbane: $308.47


Adelaide: $312.14


Source: Australian Bureau of Statistics

 

[Velma]

Why does Perth has the most expensive groceries? Shouldn't the honour go to Sydney or Melbourne?

 

[IWC2006]

Why does Perth has the most expensive groceries? Shouldn't the honour go to Sydney or Melbourne?

- higher population, economy of scale

- more competition in sydney/melbourne in terms of grocery choices

- transportation & labour costs would have added to the cost in perth (eg. fruits/veg produced in Queensland has to be transported miles away to Perth)

- More kiasu immigrants go to Melb/Sydney opening up stores to compete with the usual suspect(coles/woolies). More kiasu customers in search for cheaper goods.

 

[Velma]

- higher population, economy of scale

- more competition in sydney/melbourne in terms of grocery choices

- transportation & labour costs would have added to the cost in perth (eg. fruits/veg produced in Queensland has to be transported miles away to Perth)

- More kiasu immigrants go to Melb/Sydney opening up stores to compete with the usual suspect(coles/woolies). More kiasu customers in search for cheaper goods.

Interesting. Thanks for the information. I was always under the illusion that Perth and Adleaide has the cheapest cost of living.

Apparently in Australia, the bigger the city, the more choices you have, really different from Singapore where there is only a oligopoly or somtimes monopoly.

So I assume that since Queensland produces most of the perishable groceries, so groceries should be the cheapest in Brisbane?

 

[IWC2006]

Interesting. Thanks for the information. I was always under the illusion that Perth and Adleaide has the cheapest cost of living.

Apparently in Australia, the bigger the city, the more choices you have, really different from Singapore where there is only a oligopoly or somtimes monopoly.

So I assume that since Queensland produces most of the perishable groceries, so groceries should be the cheapest in Brisbane?

Its all about economy law of demand and supply. NSW residents though pay 'less' for grocery but they have to endure the bad infrastructure , congested trafffic, and paying more for premium such as houses. However, sometimes because of the high volume of human traffic, you can take 'free' transport because they don't have enough staff to manage the passengars.


From what I know, vegs & fruits produced in Queensland, are first shipped to NSW and Victoria because they have high demands there and massive population, Queenslanders don't always get the best freshly produced goods (unless they go wholesale) at the cheapest price. So basic stuff like grocery probably you can get it cheaper in the bigger cities. Fierce competition also bring down good prices (eg. u can get $5-$6 bowl of asian noodles in Sydney which go up as high as $10 in Darwin since there's no competition).

Not so for premium stuff such as cars & houses because the weathly people in the bigger cities will 'pay for anything' to lead the high life.

If u want to start a retail or services business, you probably should aim at a city with critical mass, unless you have a 'niche' product/or business or running a virtual store then it make sense to go elsewhere.

 

[ManBearPig62]

Since we're on the topic of groceries, let me digress a bit

I've always thought that food in Singapore was cheaper than Australia, but what I saw during my last trip back shocked me... Chicken breast going for $20/kg, beef and pork around the $13-15 mark. Basically the imported foodstuffs were about 50% higher.

The only things cheaper were stuff you get from Malaysia like fish and chinese vegetables. Everything else was about the same price.

Given that local salaries/purchasing power is about half that of Oz, effectively that means everything is twice as expensive.

I was joking to my mum, 1kg of chicken breast costs the same as 4 whole chickens, better teach my wife how to chop chickens instead la...

 

[redbull313]

What? Are you serious? Why the hell are your prices so high? After converting to my money you yongos are paying 2-3X higher for your food than I am

As I have been saying for years Australia is a rippoff. You people are getting cheated.

Ptui

 

[chewed]

obviously someone have not done groceries before.....

 

[Velma]

Its all about economy law of demand and supply. NSW residents though pay 'less' for grocery but they have to endure the bad infrastructure , congested trafffic, and paying more for premium such as houses. However, sometimes because of the high volume of human traffic, you can take 'free' transport because they don't have enough staff to manage the passengars.


From what I know, vegs & fruits produced in Queensland, are first shipped to NSW and Victoria because they have high demands there and massive population, Queenslanders don't always get the best freshly produced goods (unless they go wholesale) at the cheapest price. So basic stuff like grocery probably you can get it cheaper in the bigger cities. Fierce competition also bring down good prices (eg. u can get $5-$6 bowl of asian noodles in Sydney which go up as high as $10 in Darwin since there's no competition).

Not so for premium stuff such as cars & houses because the weathly people in the bigger cities will 'pay for anything' to lead the high life.

If u want to start a retail or services business, you probably should aim at a city with critical mass, unless you have a 'niche' product/or business or running a virtual store then it make sense to go elsewhere.

I get the picture.

For basic groceries and other necessary foodstuff, it is much cheaper in Sydney and Melbourne because of a perfect competition, hence prices are sometimes dropping to compete with one another.

For luxury material goods (car, housing, etc), it will be much cheaper in Perth/Adelaide/Brisbane/Hobart because there are not many rich people there who are willing to splash money unlike Sydney and Melbourne.

 

[IWC2006]

I get the picture.

For basic groceries and other necessary foodstuff, it is much cheaper in Sydney and Melbourne because of a perfect competition, hence prices are sometimes dropping to compete with one another.

For luxury material goods (car, housing, etc), it will be much cheaper in Perth/Adelaide/Brisbane/Hobart because there are not many rich people there who are willing to splash money unlike Sydney and Melbourne.

I don't it is any 'much' cheaper in other cities when it comes to entry houses and cars, they are comparable or slightly cheaper but not a huge difference. The luxury houses are probably more expensive(esp those with landmark harbour/opera house view). It doesn't help with local celebrities owning properties in cities thus driving up the premium of those prices.

As to there are not many rich people in Adelaide/Perth/Brisbane etc. are not exactly true as well, as most rich people invest interstates but they may choose to be based in Sydney / Melb where the action or their business is. There's certainly rich migrants living in Perth or Brisbane.

in Sydney most people want to live close to the city or close to beach or harbour but there's not enough supply to meet the demand, hence, house prices are escalating. Rich investors buy houses for their kids studying in unis also create a lot of competition. Sydney or Melbourne are top choices for immigrants thus the migration flow surge up housing demand.

The cost of living can be very subjective. In Sydney or Melb people are materialistic thus spending more to look good,fine dining, entertainment esp if u work in the CBD ; and major financial hubs are centric in these 2 cities also create the posch cosmopolitan lifestyle similiar to other major cities around the world. At the end of the day, it depends on your own discipline and what you want out from the lifestyle, cost of living is only 1 factor.

 

[Aussie Prick]

What? Are you serious? Why the hell are your prices so high? After converting to my money you yongos are paying 2-3X higher for your food than I am

As I have been saying for years Australia is a rippoff. You people are getting cheated.

Ptui

Redbull we all know that the costs in the USA are 1/3 of Australia's. We all know cars, petrol, etc is much cheaper. I still remember you can buy 3 cars in America for every one car in Australia and the cost to feed a family of 2 in Australia can feed 5 in America.

There is no Walmart in Australia so they cant buy very low cost items like Americans can even though purchasing power and salaries are very high in America.

 

[neddy]

Redbull we all know that the costs in the USA are 1/3 of Australia's. We all know cars, petrol, etc is much cheaper. I still remember you can buy 3 cars in America for every one car in Australia and the cost to feed a family of 2 in Australia can feed 5 in America.

There is no Walmart in Australia so they cant buy very low cost items like Americans can even though purchasing power and salaries are very high in America.

Nice try.
I figured out that Americans cannot afford the kind of prices we pay in Australia. But still, the purchasing power of USA and Australia are a lot higher than in Singapore, according to UBS analysis.

9.5% structural unemployment in America, and I can bet that there is no recovery for the next decade. This is probably why Fed Reserve wants to create another economic bubble because economic bubble creates temporary employment.

6.6mil jobs lost in the GFC and more than 5 mil were created in the economic bubble from 2001-2007.

 

[ManBearPig62]

What? Are you serious? Why the hell are your prices so high? After converting to my money you yongos are paying 2-3X higher for your food than I am

As I have been saying for years Australia is a rippoff. You people are getting cheated.

Ptui

To be fair those prices may not be entirely representative. You can get similar quality items at Aldi/Tesco for about half the price for some of the items mentioned.

For example, milk for $1/litre, bread for $1 per 600g loaf, cheese and eggs for half the price and good quality.

I wouldn't rate the official inflation figures too highly. The CPI is only as accurate as the basket of goods they use.

 

[ManBearPig62]

obviously someone have not done groceries before.....

Yea not in Sg as I don't live here permanently. But you always hear people claiming that food in Sg is cheap. So that's why I was shocked. And those prices were from a shop-n-save too

Want to share your numbers?

 

[IWC2006]

I didn't have to do much grocery shopping in sg so can't really compare. I know eggs are cheaper in Sg if u just compare cage eggs vs cage eggs. Adi is cheaper but not every suburbs have it. However, variety and freshness of fruits , vegs are meats are definitely spoiled for choices in Aus. In Sg, the variety in supermarkets are really limited, usually u get cheaper stuff fromt he wet market - but they are stink & dirty.

 

[neddy]

Yea not in Sg as I don't live here permanently. But you always hear people claiming that food in Sg is cheap. So that's why I was shocked. And those prices were from a shop-n-save too

Want to share your numbers?

Cheap is not always good. But not cheap and poor quality ... Now with China flood, Singapore vegies will be even more expensive.

Well, when Singapore visitors visit me in Perth and I bring them to the local IGA, they are usually surprised at the fresh and plump vegies.
Bring them to a farmers market and they grab the home-made strawberry jams (made the day before) and honey.

They raid my vegie patch for bittergourds (grown separately), tomatoes, chillis, etc to bring back Singapore.

In Singapore, you cannot get this freshness.

In Perth, ginger is expensive. so is mangosteens.

And as for vegies grown in Australia, they are naturally delicious, esp at this time of the year.

 

[Aussie Prick]

Nice try.
I figured out that Americans cannot afford the kind of prices we pay in Australia. But still, the purchasing power of USA and Australia are a lot higher than in Singapore, according to UBS analysis.

9.5% structural unemployment in America, and I can bet that there is no recovery for the next decade. This is probably why Fed Reserve wants to create another economic bubble because economic bubble creates temporary employment.

6.6mil jobs lost in the GFC and more than 5 mil were created in the economic bubble from 2001-2007.

Well the PPP is 1.66 A$ to the US$ Inflation figures between the US and Australia are also very different.

I think you are forgetting that commodities are priced in US$ so America is the only nation in the world that is unaffected by a rise in import prices. Singapore, Europe, Australia are of course affected - it means you pay more. This is unfortunate for everyone outside the US.

Currently we dont think there will be a double dip but we are concerned with US job creation. Very very Concerned. Right now the situation in the US is "Murky" - no one really seems to know which direction the ecomomy is headed.

 

[neddy]

Well the PPP is 1.66 A$ to the US$ Inflation figures between the US and Australia are also very different.

I think you are forgetting that commodities are priced in US$ so America is the only nation in the world that is unaffected by a rise in import prices. Singapore, Europe, Australia are of course affected - it means you pay more. This is unfortunate for everyone outside the US.

I remember oil prices going up in US$, wheat prices going up in US$ too.
Walmart is rising prices again by 6% because of the exchange rates.

Currently we dont think there will be a double dip but we are concerned with US job creation. Very very Concerned. Right now the situation in the US is "Murky" - no one really seems to know which direction the ecomomy is headed.

The US situation is "Murky" only to economists who are "surprise" at this economic news and "surprise" at that economic figures. :-)
To one of the guys that implements UK's Thatcherism economics, he has already predicted what will happened in the US ever since Reagan-omics.

The combination of easy solution from avoiding higher taxes and monetarism has given rise to the current situation.

The recession has never left us. The stimulus masked the recession.
Despite the spin from some circus (sic) in America, They are already suffering from price deflation (QE to reflate does not work because of deflation - the USA is in fact in hyper-inflation). Look closely and you will see the similarity with Japan after the Plaza Accord.

The "double dip" is coming, 10-year US Treasury Bond price is just another indication of the slowdown to come.

 

[chewed]

Yea not in Sg as I don't live here permanently. But you always hear people claiming that food in Sg is cheap. So that's why I was shocked. And those prices were from a shop-n-save too

Want to share your numbers?

No way will food be cheap in SG, cos it's all imported. Not to mention the buyers always get the cheapest ones, the freshness & quality sucks.

 

[Aussie Prick]

I remember oil prices going up in US$, wheat prices going up in US$ too.

The US situation is "Murky" only to economists who are "surprise" at this economic news and "surprise"

The "double dip" is coming, 10-year US Treasury Bond price is just another indication of the slowdown to come.

Which has translated into a 10-30% price increase in food prices in European nations such as the UK. In the past 3 years while the US has enjoyed near deflationary price pressures prices have been increasing elsewhere. Some food staples have increased 50% in Europe in the last 3 years. Look at prices in Singapore as well as Australia during the last 3 years and compare them to American prices. We are all paying the price while America struggles to recover. Thier consumers are indeed the luckiest in the world.

We beleive the situation is murky because the G-8's austerity measures have interrupted the global recovery. Its turbulent. The best indictator of this turbulence lies in the incredible activity in the bond market. With Friday's US CPI of 1.2% inflation is not a concern right now so investors and institutions have been buying bonds while dividends are being slashed.

And why not? American companies are absolutely loaded with cash. Take Microsoft, for example. It has $35 billion in cash. Cisco has $25billion in net cash. Apple has $24 billion in net cash. Intel has $16 billion in net cash. Dell has $6 billion. eBay has $5 billion. Oracle has $4 billion. Gap has $2.5 billion in cash.

According to the Wall Street Journal, corporate America now holds the largest cash balance in history.

We still dont think there is a doule dip - but the recent 70-80K nett job creation P.M. is a worry. American companies are making $$ but they are not hiring.

Also the American Banking system is supporting consumers through its second tier Credit Unions whom have been virtually unaffected by the crisis. US Credit Unions have been issuing credit and loans to consumers thus bolstering the fragile recovery. The US Credit Unions have been labelled the savior of the US Economy since they pay no taxes, and unlike the US Banks they require income documentation so thier defaults are low. As long as credit is flowing and people are paying thier bills we dont see it.

Now if only the Obama administration can somehow double job creation which we expect some action otherwise there is no chance he will get relected in 2012. Its not that far away. Strong job numbers in the US will benefit us all and stop our costs from rising.....