Fast-rising food prices could make dent in savings accounts

Aussie savings accounts may be feeling the strain as the country has some of the fastest-rising food prices in the world, according to a new report.

Figures from the Organisation for Economic Cooperation and Development have revealed that since 2000, the cost of consumables has increased by 41.3 per cent.

People concerned for their high interest savings may agree with some commentators that the nation’s "duopoly" is the root cause.

Competition minister Craig Emerson pointed out that Coles and Woolworths supply much of the produce available to consumers and said the statistics may prompt action to stimulate more competition in the market.

University of New South Wales associate professor Frank Zumbo echoed these sentiments, stating: "When you look internationally, it is our market concentration which explains why our grocery prices are rising faster."

However, Australian Competition and Consumer Commission chair Graeme Samuel said these figures should be treated with caution and instead pointed to international conditions as the cause of the increases.

Last month, Yates’ senior horticulturalist John Archer told News Limited that people may want to consider growing their own food in order to set aside cash to boost savings accounts.

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