Last month The Times introduced the Shopping Trolley, a basket of 20 grocery items almost all shoppers will buy on a monthly basis whose prices are likely to fluctuate.
Every month we go shopping at four large food retailers and keep track of the prices of the items in our trolley.
The idea of the trolley drew positive feedback from readers and has convinced us to change some of the items.
Prices have fluctuated in the past month but we are not yet feeling the significant changes predicted by economists.
South Africa has enjoyed good summer rains, but Andre Jooste, an economist at the Agricultural Marketing Council, says consumers could only hope to see the benefit of this in a month or two.
He said, “What normally happens is that we see what is called a “downward stickiness” in prices.
“This means that even though grain crops will drop in price due to the good rain, food prices will not drop in the same month because millers don't buy maize the same month that the food arrives on the shelves.”
Economists have forecast that inflation will peak at 9percent in February.
Danelee van Dyk, an economist at Standard Bank, said, “Food prices drive the increase in inflation and the 9 percent we are currently at is as a result of high food prices. There is no relief yet for consumers as far as food prices are concerned.
“The sharp increase in the producer price index in the last four months of 2007 suggests that we will see those prices from producers reflecting in the retail basket within the next three months.”
Source: The Times
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