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Aldi had the lowest prices for a basket of average goods of the major supermarkets according to a survey by consumer group Choice.
An average basket of 14 common household items from Aldi costs an average of $51.51 compared to $68.58 at Woolworths and $69.33 per Coles.
Meanwhile, a lack of competition is being blamed for shoppers in Tasmania and the Northern Territory spending the most on their weekly grocery bill.
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The report said the lack of Aldi stores in Tasmania and the NT contributed to higher average grocery prices.
Shoppers in Tasmania pay an average of $68.90 for the basket of goods, while those in the NT pay $68.82.
Customers in other jurisdictions pay an average of between $62 and $64 for the same items.
Choice chief executive Ashley de Silva said where customers live determines how much they pay at the till.
“If you live in Tasmania or the Northern Territory, you’re paying significantly more for your groceries every week,” he said.
“However, this is mainly because these areas have more limited shopping options than the rest of the country, with no Aldi in Tassie or the NT.”
The basket of items included bread, flour, milk, ground beef, tinned tomatoes, Weet-Bix, apples, carrots, penne, block of cheese, frozen peas, butter, sugar and tea.
De Silva said Coles and Woolworths were similar in terms of prices.
“Grocery prices at Coles and Woolworths are very close, with just 75 cents separating the prices of our 14-item basket without special offers,” he said.
The report was the first of a series of quarterly government-funded reports on supermarket prices, which have been set up to help tackle cost-of-living issues at the till.
Aldi welcomed the report, but Coles questioned the study’s methods and offered its own price.
“We welcome Choice’s input, but it is unclear whether similar products are being compared,” Coles said.
“Our analysis last week comparing the same basket in NSW shows that customers can buy these products for $59.35 at Coles.”
Woolworths highlighted the choice in its survey response.
“We know many of our customers choose Woolworths for our wide range of high-quality products at competitive prices in more than 1,000 locations across Australia,” the company said.
The federal government gave Choice $1.1 million to produce the reports over three years.
A federal review has called for a code of conduct between supermarkets and suppliers to be made mandatory.
Competition Minister Andrew Lee said the report would help put pressure on supermarket giants to cut prices.
“Australians are under cost-of-living pressure and we know a lot of that pressure is building up in the coffers,” he said.
Greens senator Nick McKim said the report highlighted the need for more players in the market.
“It is unbelievable that there can be only a 1 percent price difference between a duopoly. Choosing between Coles and Woolworths is no choice at all,” he said.
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