Cape Town - The Competition Commission has accused retailers and wholesalers of taking advantage of the east-European conflict and subjecting South African consumers to opportunistic food price increases.
The commission’s latest Essential Food Pricing Monitoring (EFPM) report said retailers and wholesalers had unjustifiably pushed up prices of cooking oil, bread and maize meal over a two-year period.
The commission, which has been monitoring essential food prices since the Covid-19 pandemic in March 2020, said that although the effects of the pandemic on many markets had largely subsided, food prices continued to be elevated and vulnerable to supply shocks.
The commission investigated the prices of the staples as well as fruit and vegetables in the period between 2021 and 2022.
From January to December 2022, white and brown bread retail prices rocketed by 20% and 19%, respectively.
The report showed that as of June last year, the retail price of a loaf of white bread was R17.41 and the producer price was R12.42, a profit of almost R5.
The price of maize meal also surged by 32%, from R26.62 to R35.29.
The report said the conflict had an impact on the price of these goods, but that producers in particular had exploited the situation.
In his budget speech yesterday, Cape Town mayor Geordin Hill-Lewis commented on the increasing costs.
“Every trip to the supermarket reminds us that the price of a trolley of basic groceries is unrecognisable from a year ago.
“Staples like milk, eggs and cheese are up 12.3% from last year this time. Overall food inflation is closer to 14%,” he said.
The commission’s report comes as take-home pay tracked in the BankservAfrica Takehome Index was released yesterday.
It showed that the average nominal take-home pay recorded at R15 186 in February remains 1.8% below the R15 469 measured a year ago.
Independent economist Elize Kruger said: “Consumer inflation has been moderating rather slowly, resulting in the ongoing erosion of the purchasing power of households.”
The commission’s Fresh Produce Market Inquiry begins its investigations on March 31.
Commissioner Doris Tshepe said: “The market inquiry will examine whether any features in the fresh produce value chain impede, restrict, or distort competition in the market.”