er 20 per cent of suppliers. “Suppliers do have real cost increases, and where that is the case, we need to accept those and then work hard to figure out if we do or don’t pass those onto our consumers,” Banducci said this week when he released the supermarkets’ third-quarter results. “What we’re always trying to do is balance our various stakeholders, our customers, our team, our shareholders, our suppliers and the communities we serve. It’s always a balance for us, and we’ll need to keep working through it as challenges are confronted.” Woolworths was able to keep its overall price inflation to around 2.7 per cent during the third quarter, not far off rival Coles’ 3 per cent figure and well below the current underlying figure of 5.1 per cent.  However, with the RBA’s decision now made, it is unknown how much longer food prices can afford to stay down. Industry players back wage rise For what it’s worth, Banducci backs a modest rise in Australia’s minimum wage as a means of fighting the rising cost of living. Woolworths supports the Australian Retailers’ Association’s submission to the Fair Work Commission’s Annual Wage Review, wherein ARA chief executive Paul Zahra said wages should rise to reflect an increase in inflation, less the cost of superannuation. “I think that is very balanced,” Banducci said. “We support the way they’ve thought about that, and the middle ground they’re trying to achieve.” The National Retail Association put a more concrete “no more than 3 per cent” rise as their target, fearing an impact on employment growth and workforce participation should wages grow too quickly. “Minimum wage rises beyond this level would undermine business confidence and prohibit employment growth within retail industries, which are themselves relying on promising yet uncertain forecasts of recovery,” the NRA said in its submission.  During the last wage increase in 2021, the retail industry delayed its increase from the official start date of July 1 to September 1.    The Shop, DIstributive and Allied Employees’ Association said this shouldn’t be allowed to happen again, as retail workers have been negatively affected by years of delayed wage growth.  “These frontline workers have been essential to the economy, tirelessly serving the Australian community during the height of the pandemic,” the SDA said.  “Instead of being rewarded for their efforts, they have had to suffer the impact of a sector-wide decline in real wages in the context of broader wage stagnation generally.” Beyond the issue of pricing, Banducci told analysts that the business was still experiencing issues with stock availability, with floods impacting a number of its businesses, and certain lines being more difficult to restock than others: toilet paper being one of them. “There are some delays that could happen on that front,” Banducci warned. “We have it in stock, and I don’t think people will need to panic buy [anytime soon], but some of the brands that we would normally carry are being rotated.” Pet goods are another issue, Banducci said, with cat food and litter likely to remain difficult to source for a few more months.