Sainsbury’s anticipates robust profit growth for the upcoming year based on successful customer attraction from competitors through reduced food prices. Despite challenges in general merchandise sales, the grocery giant remains optimistic about its future earnings as it focuses on affordable food and plans to reinvest savings into the business.
Inflation in Australia has moderated to 3.6% in the year to March, but key sectors such as education, rental housing, and insurance continue to drive it higher. Despite a 1% increase in the first quarter, inflation eased from 4.1% in the previous quarter and the December 2022 peak of 7.8%. The Reserve Bank aims to achieve inflation between 2-3% to support economic stability, but the path to that target remains challenging.
While food inflation has slowed in recent months, community groups across Nova Scotia are still experiencing a surge in demand for their services as grocery bills remain high for many households. Organizations like the Mobile Food Market have doubled their supply in the past 18 months to meet the increasing need, and have received provincial grants to expand their capacity. Farmers’ Markets of Nova Scotia is also witnessing overwhelming demand for its food coupon program, which provides weekly allotments of market bucks redeemable at local markets. Despite easing inflation, food prices remain significantly higher than pre-pandemic levels, driving consumers away from mainstream grocery stores. Experts predict that grocery prices will continue to drop in the coming months due to declining consumer spending. However, overall inflation, particularly in categories such as housing and interest rates, remains a challenge for many Nova Scotians.
