Retail prices have risen substantially over the past three years in Australia, and surprisingly there has been little damage to volumes. In Issue 7 of Price Watch, we assess the relative price movements in retail. Retail price inflation has generally only tracked broader inflation and therefore its relative affordability remains good. Moreover, our analysis across many large retailers reveals they have been meticulous in ensuring price relativities between brands and private labels have been held. Even with sensible measures on price, retailers should brace for a consumer that will increasingly substitute to different pack sizes, brands or even delay their purchase. These behaviours tend to build over time in both food and non-food retail categories.