ACCC inquiry into grocery prices

The Government has directed the Australian Competition and Consumer Commission to commence a formal inquiry into grocery prices.

The Government has instructed the ACCC to take a broad approach to its inquiry and ensure all aspects of the chain are included - from the farm gate to the check out counter.

The inquiry will consider the current structure of the grocery industry at the supply, wholesale and retail levels including mergers and acquisitions by the national retailers; the nature of competition and the pricing practices in the grocery industry; and factors influencing efficient pricing of inputs along the supply chain.

The ACCC is required to report to the Minister  by 31 July 2008.

UPDATE 2 February: ACCC's announcement that it will release an Issues Paper soon.