Supermarket giant Coles has told its suppliers to cut their operational costs as inflation in the sector soars.
The inflation rate for supermarkets has soared to 7.1 per cent in the first quarter, compared to 4.3 per cent in the previous fourth quarter, according to a trading update.
Coles has responded by asking its suppliers to find ways to reduce their costs so that the supermarket can keep its prices down for customers.
The supermarket said it was committed to passing on the savings to customers and had asked suppliers to help by cutting their costs.
“We have always worked hard to keep prices down for our customers and we will continue to do so,” a Coles spokesperson said.
“We have asked our suppliers to continue to find ways to reduce their costs so we can keep prices low for our customers.”
The first quarter trading update from Coles showed that fresh food inflation continued to be driven by bakery items such as wheat, as well as by fresh produce items such as berries and bananas.
Inflation in the grocery sector has been driven by a range of factors, including higher costs for dairy, meat, and fresh produce.
The cost of living is already a major political issue in Australia, with the government under pressure to do more to ease the burden on households.