Coles and Woolies need to eat some of the food price rise pain

April 27, 2026 — 5:00am

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The hip-pocket impact of the Iran war is moving from the petrol pump to the supermarket aisle. The price of milk has jumped at Coles and Woolworths, and experts say we’ll inevitably face higher food inflation in products from bread to fresh vegetables to eggs.

There’s bound to be plenty of scepticism in the community about just how much these hikes are justified, as always. This questioning will probably be particularly focused on Coles and Woolworths, which have been under intense scrutiny from politicians, the public and the consumer watchdog over the “fake discounts” case.

Grocery inflation will also be one of the most important issues for investors in our biggest supermarkets when Woolworths unveils a quarterly result on Thursday, followed by Coles on Friday

So, what’s behind the predictions of supermarket prices going up? And is this likely to deliver a big bottom-line boost to Coles and Woolies?

Despite US President Donald Trump’s highly uncertain ceasefire with Iran, there’s no doubt that inflation is now going to be higher because of the war, and the hit goes beyond fuel prices. Food is high on the list of products that are likely to get more expensive, for several reasons.

Suppliers could cut us off if we don’t hike then cut prices: Woolworths

First, supermarkets and farmers both need to transport their goods, and those transportation costs have already shot up........

© Brisbane Times