Bleak Christmas, New Year loom for shoppers

An annual survey carried out by The Herald, comparing December 2006 and current food prices at the Spar, Shoprite, Pick n Pay and Woolworths groups, revealed a steady increase in the price of most food items.

With petrol prices increasing by 43 cents this week, and the anticipated snowballing effect on food prices, consumer watchdog bodies predicted a gloomy time for many poor families on Christmas day.

SA National Consumer Union chairman Ina Wilken said: “There will be no money for the basics, let alone presents. The average person is despondent and there are no answers. The year-on-year inflation is scary. Why is food inflation so high? I know they will say it‘s petrol prices, but why should the consumer bear the brunt?”

The Monetary Policy Committee is meeting in Cape Town on Wednesday to look at inflation and consider whether to hike interest rates.
Wilken said Reserve Bank governor Tito Mboweni should be very careful about increasing interest rates.

She warned consumers not to be carried away and spend irrationally during the festive season.

“If there is extra money, use it to service debt. Save for school and tertiary fees for the children in the New Year. Be serious and spend what you need.” Splurging on expensive gifts and trivia should be the last thing, she said.

Equally unhappy was National Consumer Forum chairman Thami Bolani.

“Food prices have been on the rise in the past two years.

“Food and petrol prices are responsible for the high inflation and as a result consumers in lower income brackets are going from bad to worse. For them to afford the basic food commodities they have to dig deep into their pockets.”

He also exhorted consumers to be vigilant as retailers, inspired by high demand for food products, tended to inflate prices during the festive season.

Gina Smith, who was doing her shopping at the Five Ways Spar, said consumers should be careful not to go overboard.

“Food is very expensive, particularly dairy and meat products.”

Pensioner Sybil Fourie, 76, said it would be a big struggle. “We have to cut back on many things. Kids won‘t be getting any presents this time around. Petrol, rates and taxes – everything is just too expensive.”

Another pensioner said, “Speak to Mboweni and tell him that we are very disappointed with him. Think of the little children who won‘t be getting their Christmas presents. Christmas means a lot to them."

Source: The Herald

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