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flag Iran conflict pushes up food prices, but Australian retailers may absorb costs to avoid reputational damage.

flag A conflict in Iran is driving up food prices, threatening to increase costs for staples like milk and bread. flag While analysts note inflation usually boosts profits, Coles and Woolworths face reputational damage from ongoing scrutiny over "fake discounts," making it risky to raise prices aggressively. flag Facing regulatory pressure and competition from Aldi, the major retailers are expected to absorb some cost increases rather than pass them all on to consumers.

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