Cost of chocolate falls – but you’ll still pay more this Easter
Australians will spend over $1.3 billion this Easter, as falling inflation inputs are not passed onto shoppers.
New research shows the price of goods that make up Easter eggs have fallen, but consumers will still miss out on the savings.
According to eToro, as of mid-March, costs have fallen 11% for the cocoa, sugar, milk, aluminium (for the foil) and wood pulp (used in cardboard).
The 11% fall in ingredients prices stands in sharp contrast to the 34% cost rise for this basket of commodities in the 12 months prior.
But even still, eToro's market analyst Josh Gilbert says the savings won't filter through to consumers.
"Commodity prices are far more volatile than the prices consumers pay in shops and there is often a delay in the trickle down effect," he said.
Cost of living crisis fails to stop Aussies spending
Despite cost of living pressures, it appears as though consumers will continue to spend up this Easter, adding over $1.3 billion to our economy.
Data released by Finder shows the majority will be on easter eggs, which is tipped to set you back $62 per person this year.
This alone will cost $651 million.
The rest will be made up of entertaining guests, dining out, or even going away for the long weekend.
When it comes to spending:
- baby boomers will be splashing the most on travel ($1,125)
- gen X will be splurging the most on chocolate ($66)
- millennials will overspend the most on dining out ($123)
- gen Z plan to splurge on clothing ($90)
When will your shopping bills fall?
While you will pay more during the holidays, eToro research says your grocery prices may be coming down soon enough.
"It feels as if it is one thing after another for Australian households, but, the good news is that this commodity price fall should feed through to prices on the supermarket shelves in the coming months," Gilbert says.
Gilbert also says inflation might have peaked, which will further help shoppers.
"As these types of price falls feed into the economy, households should finally start to get some cost-of-living relief from rising prices," the market analyst continues.
When it comes to Easter itself, eToro suggests that 2024 could be cheaper than 2023, although it is reliant upon falling inflation to continue.
Looking for ways to save this Easter? See our cost of living hub where we provide handy tips to help you save money.
