Thu Oct 27 08:59:50 SAST 2016

Lower food prices have yet to hit the shelves

By unknown | Jun 26, 2008 | COMMENTS [ 0 ]

Robert Laing

Robert Laing

Consumers are not seeing the lower food prices that farmers received two months ago.

May's consumer inflation was led higher by bread, pastas and other grain products prices jumping nearly seven percent month-on-month. This was despite last month's producer price index (PPI) data showing farmers saw grain prices in April fall five percent from March.

Vegetable prices increased nearly two percent from April to May despite a 17percent drop in produce prices reported at farm gates two months ago.

About the only good news in yesterday's consumer price index (CPI) data was fruit and nut prices dropped four percent, meaning part of the 17 percent lower prices farmers received in April was reflected in supermarkets in May.

Vehicle running costs showed the next biggest monthly price jump of nearly five percent. Stats SA bundles petrol prices which rose 55 cents a litre in May into its vehicle running cost figure.


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