This may be as good as it gets: NZ and Australia face a complicated puzzle when it comes to supermarket prices

THREE KEY FACTS Supermarket sectors in Australia and New Zealand face scrutiny over alleged price gouging and lack of competition . The New Zealand Government is considering breaking up major supermarket groups to increase competition. Studies highlight high profits and barriers to entry, but warn that interventions may not benefit consumers.

With ongoing cost of living pressures, the Australian and New Zealand supermarket sectors are attracting renewed political attention on both sides of the Tasman. Allegations of price gouging have become a political issue in the Australian federal election . At the same time, the New Zealand Government has announced that “all options” are on the table to address a lack of competition in the sector – including a possible break up of the existing players.



But it is not clear breaking up the supermarkets or other government interventions will improve the sector for shoppers and suppliers..