The RBA's deputy governor has called on consumers to avoid companies that unjustly hike prices, emphasizing public frustration with inflation and shrinkflation.
The Deputy Governor of the Reserve Bank of Australia (RBA), Andrew Hauser, has advised consumers to 'vote with their feet' in response to price hikes by companies. In a recent podcast discussion, he addressed ongoing inflationary pressures, expressing his understanding of the frustrations consumers face when companies engage in practices like price increases and shrinkflation. Hauser's remarks indicate a broader concern regarding consumer habits in the wake of the COVID-19 pandemic, during which many experienced rising costs and deceptive pricing strategies.
Hauser's comments align with those made by Australia's Prime Minister, Anthony Albanese, who suggested last year that some supermarkets were misleading consumers with steep price hikes and illusory discounts. The articulation of these sentiments highlights a growing public sentiment against inflationary practices, particularly in the food sector, where a recent spike in grocery prices has drawn significant scrutiny. The discussion also notes that the legal proceedings regarding alleged deceptive practices by Coles supermarkets are currently underway, further intensifying the scrutiny on the retail sector.
As prices continue to surge, consumer advocacy is expected to increase, prompting individuals to be more discerning about their purchasing choices. This call for action implies that continued awareness and scrutiny of corporate practices may influence market behaviors and potentially lead to more significant changes in pricing strategies. If consumers indeed 'vote with their feet', businesses may need to rethink their pricing approaches to retain customer loyalty and avoid backlash.
