Why buying frozen peas is a sign you are struggling financially

Australia’s cost of living crisis is now so bad low-income earners are spending a quarter of their pay on groceries – and even skipping meals to survive.

A new Australian Competition and Consumer Commission report has also suggested those who buy frozen peas are in trouble financially.

‘Households have also told the ACCC that to reduce their grocery bills they are spending more time shopping around for savings, substituting fresh food with frozen, and cutting back on non-essential items,’ it said on Thursday.

Frozen peas from Birds Eye and McCain are selling for $6 a kilogram, but Woolworths is offering a 500 gram home brand equivalent for $2.50, working out at $5 a kilogram. 

That is significantly cheaper than the $24.99 price per kilogram for fresh, unshelled peas at Whole Farms Market. 

But those weren’t the only sacrifices to be revealed from a 15-minute online survey of 13,000 people, so far, that is running until April 2.

‘Some people have also reported skipping meals or sacrificing meals to feed children properly,’ the ACCC said.

‘Many younger Australians and lower income households are spending up to one-quarter of their net income on groceries.’

Australia’s are already considered to be in mortgage stress when they are spending 30 per cent of more of their pay on monthly repayments – and that’s before tax.

To spend a quarter of pay on supermarket items, after tax, suggests the cost of living crisis is affecting more than just those with a mortgage, even though inflation is moderating. 

The consumer regulator is examining the cost of living crisis as part of an inquiry into supermarkets.

Inflation moderated in February to 3.4 per cent, putting it only marginally above the Reserve Bank’s 2 to 3 per cent target, new Australian Bureau of Statistics data released on Wednesday showed.

Australia’s cost of living crisis is now so bad low-income earners are spending a quarter of their pay on groceries and even skipping meals to survive (pictured is a Woolworths shopper in Sydney)

But tobacco prices soared by 10.7 per cent in the year to February, even before the latest excise increase. 

Grain-based foods are still dear with cereal and bread prices climbing by 7 per cent over the year.

This was double the 3.6 per cent price increase for food and non-alcoholic drink prices.

Breakfast foods are getting more expensive at the checkout, with Coles selling Kellogg’s Crunchy Nut Corn Flakes in a 640-gram pack for $10.

A new Australian Competition and Consumer Commission report has revealed struggling consumers are now swapping fresh fruit and vegetables for frozen food (pictured is a stock image)

The same money buys a 740-gram pack of Kellogg’s Just Right.

Those who have milk with their corn flakes are also in for a rude shock, with dairy prices up 4.2 per cent.

A two-litre A2 bottle of milk is $6.90 at Woolworths, or $3.45 a litre.

Supermarket giants Coles and Woolworths have recently blamed higher production costs for product sizes shrinking, even though the price has either stayed the same or gone up. 

This followed consumer group CHOICE revealing the extent of ‘shrinkflation’.