How are grocery basket prices calculated?
Grocery basket prices are calculated using the prices of approximately 500 grocery products. Each of the 500 products are allocated to one of seven typical grocery baskets. Prices for each of the 500 products are collected monthly via an independent survey of approximately 600 supermarkets across Australia. Once collected, a number of quality assurance techniques are applied to the prices data to ensure its accuracy. Each of the product prices in the basket are multiplied by an appropriate expenditure weight, reflecting the importance, in terms of average weekly expenditure, of that product compared to all products within the basket. These data are then aggregated by supermarket retailer and region to create the various basket prices.
