Coles denies price gouging, says food inflation is global

Coles and rival Woolworths now face Senate and competition regulator inquiries into how they set prices. — Reuters

SYDNEY: Australia’s No. 2 supermarket operator Coles Group rejected accusations of price gouging as its first-half profit beat analyst forecasts, saying food inflation was a global problem and its margins were steady.

Coles and larger rival Woolworths Group, which together account for two-thirds of Australian grocery sales, have been accused by lawmakers of using their market dominance to put up shelf prices more than needed at a time when 13 interest rate hikes have left more people struggling to pay their mortgages.