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South Africa: Watchdog worried that retailers didn't pass cost cuts for bread on to consumers

Published Aug 26, 2022

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The Competition Commission is concerned that retailers may not have passed on wholesale cost reductions for bread to consumers in the past.

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The Competition Commission is concerned that retailers may not have passed on wholesale cost reductions for bread ((700g loaf)) to consumers in the past. This assumption is based on an analysis of retailers' margin growth done for the Commission's latest monitoring report on essential food pricing, released on Wednesday. White bread The retail and producer prices of white bread were R15.46 and R11.31 respectively in January 2022 - a difference of R4.16. By June 2022, the retail price of a loaf of white bread was R17.41 and the producer price was R12.42, a difference of R4.99. To the commission, this indicates that retail prices of bread have risen faster (12%) than producer prices (10%) over this period. Looking further back, the commission submits that a steep decline in producer prices, which went from R11.71 in August 2019 to R10.08 (16%) in September 2019, was not passed on by retailers to consumers. Brown bread In January this year, the respective retail and producer prices ...
Source: News24
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