Consumers are expected to be hit by rising grocery prices under the Government’s proposed emissions trading scheme.
The scheme would see grocery prices increase by as much as seven percent. The Government says it plans to compensate households for the increases, but is yet to announce how they would do this.
Australian Retailers Association executive director Russell Zimmerman said the ETS would lead to a sharp increase in grocery shelf prices, with costs being incurred at every stage of the production and distribution process.
“It’s going to be a high cost to the consumer…retail is a very competitive business. There’s not a lot of margin in grocery retailing, so these costs can’t be absorbed.”
In another shake up to the grocery market, American wholesaler Costco will open its doors today in Melbourne, with promises of a bargain hunters paradise.
The members only discount warehouse will contain over three and a half thousand products, ranging from cheap groceries to expensive diamond rings.
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