Cape Town – The Competition Commission has reported that despite a decrease in global food prices, consumers in the country are still paying excessively high prices for staple foods like bread, maize meal, and cooking oil.
Food inflation is currently almost twice the inflation rate for all goods and services.
According to EWN, the commission’s latest report indicates that even though commodity prices have fallen this year, consumers have not seen a corresponding drop in prices.
“Simply put, the rocket and feather effect is whereby markets realise that rapid increases in input costs due to volatility and inflation and when such costs come down, consumers do not necessarily enjoy significant reduction in retail prices,” the report quoted Competition Commission, Siyabulela Makunga as saying.
Compiled by Betha Madhomu