Is the government's supermarkets pile-on a PR stunt? Economists think so.
The government is reviewing the supermarkets' approach to pricing in the midst of a cost-of-living crunch. But economists say it'll do little to solve inflation woes.
The federal government's review of supermarket giants and their pricing during the cost of living crisis has got up the nose of some of Australia's leading economic commentators.
That's not because they don't see issues in the nation's Coles and Woolworths-dominated grocery sector, but because the review of the Food and Grocery Code of Conduct is unlikely to do much to ease hip pocket pain.
Independent economist Saul Eslake is supportive of the government’s efforts to improve competition in the economy more broadly, but is dismissive of the benefits of this specific review for average households.
“This inquiry is primarily a public relations exercise,” Eslake says. “Blaming the supermarkets for inflation in general, or [for rising] food prices, is missing the mark.”
