Food Prices Carbo loadshedding
Relief is on the way for shoppers as food prices commence their halting decline to more normal levels. Particularly so for carb-loving South African consumers – the prices of staples such as mielie meal, cereals, breads, and cooking oils are set to drop fastest. Globally, the prices of grains and fats have already declined 30% since they peaked late last year, although sugar, wheat flour, bacon, cheddar cheese, onions, broccoli, spinach, pumpkin, peppers, and baked beans are all still 30% more expensive than they were a year ago. And load shedding – which is costing our suppliers and retailers billions of rands in diesel costs and lost productivity – is keeping prices in the Beloved Country higher than elsewhere. Because of the lag between price reductions at the agricultural level and the till point (driven by food producers buying forward on prices approved months ago), it will still be a while before the beleaguered shopper sees any major price drops, and sales experience their long-awaited upward swing. For more on the latest retail trade sales numbers and what they mean, watch this interview with our very own Senior Retail Analyst, Andrea du Plessis.
Comment: A decline in food prices brings with it a glimmer of hope for shoppers. Hopefully it brightens into something more permanent.