Supermarkets try to keep prices in check
Food items that faced the largest increases in local stores were 10kg white sugar, 14%; 5l cooking oil, 7%; 200g curry powder, 6%; 24 stock cubes 15%; two packs of 400g soup, 7%; 6kg tomatoes, 29%; 5kg carrots, 24% and 1.5kg apples, 23%.
The National Agricultural Marketing Council’s (NAMC) latest Food Basket Price report recorded an increase in food inflation to 3.5% in August compared to the same month last year, while meat price inflation was 5.3%, vegetables was 8.9% and milk, eggs and cheese prices had increased by 3.7%.
“Fuel hikes take about two or three months to go through the food value chains and we have already seen fuel increases over the past several months.
“It means that food prices are likely to continue increasing albeit this latest hike may have a shortened delayed effect as retailers may move quickly to maximise on the perception of hikes affecting foods on shelves more quickly,” Smith said.
Taxi fares in Pietermaritzburg increased by around 8.3% in August 2018 and comprised about 16% of the wage of a worker earning R3 500 a month.
“Another increase so soon after this could be devastating. Taxi fares hollow out wages,” Smith explained.
She said women in rural and township areas could only afford to travel to town once or twice a month.
“Transport fares are already too high for the majority of working class families.
“We will need to watch this space as this will shift the depth of the affordability crisis significantly,” Smith warned.
Smith advised consumers to shop around and be aware that retailers use specials on larger items to draw shoppers, while increasing prices on smaller items like toiletries to make up some of the difference.
SA National Consumer Union vicechairman Clif Johnston said consumers would be hard hit by the price increases.
“For very many consumers, this will reduce even further the amount of money available to buy food. The relatively stable food prices, at least of essentials, over the past year are already a reflection of the reduced buying power of consumers. This trend is likely to exert even more downward pressure on food prices in future.
“However, suppliers will only be able to absorb some of the increasing transportation and energy costs, and food prices will inevitably rise,” Johnston said.
He said suppliers responded to reductions in consumer demand by offering specials, often with substantial price reductions, to clear stock and restore cash flow.
“Consumers should look out for such specials, and spread the news through social media.
“This is especially so when they involve non-perishable items such as toilet paper, detergents, long-life milk, sugar and canned foods.
“Beware of buying more perishables, such as fresh meat, on specials than you would normally consume as this might lead to wastage,” Johnston said.