(Reuters) – Woolworths Group, an Australian grocer, reported Tuesday a nearly 10% increase in its third quarter sales. This was due to increased inflation in the first part of the quarter and stockpiling by consumers.

The country’s biggest supermarket chain was hit by COVID-19-related labour shortages, disruptions to supply chains and other issues during quarter. However, sales were boosted by increased consumer spending as well as surging costs.

The Australian inflation rate grew at its fastest pace for two decades in the last quarter. Fuel, property, and food prices rose along with increasing costs around the globe, which has led to increased input costs for businesses.

Woolworths continued operations sales were A$15.12 Billion ($10.66 Billion) in the three-months ending April 3. This is an increase of A$13.79Billion logged last year.

Australian Food, the largest segment of the grocer, experienced a 5.4% increase in sales, reaching A$11.43 trillion in quarter. The comparable sales of the same division also increased by 4.4%.

Smaller rival Coles last week https://www.colesgroup.com.au/DownloadFile.axd?file=/Report/ComNews/20220428/02514421.pdf said it hopes improved stock availability will curtail racing inflation as it reported a slight uptick in its third-quarter sales, but warned soaring supply costs would trouble the economy for another year.

($1 = 1.4186 Australian dollars)