A PYMNTS Company

South Africa Is Worried About Food Price Hikes During Lockdown

By  |  September 23, 2020

There is likely little concern for any lasting effects from the pandemic’s initial impact on the market, at least for the products considered by the South Africa Competition Commission in its second quarterly report on Essential Food Pricing, reported The Citizen.

The first two reports seem to suggest that all food products showing a pricing spike also showed prices easing afterwards, although the COVID-19 pandemic came with some “short-term pricing effects at a wholesale level, particularly on essential food products.”

Data from the Johannesburg fresh produce market and StatsSA suggest little concern for any lasting pricing effects from the pandemic’s initial impact on the market, but there is some concern about retailers and retail markets.

The Commission’s analysis indicates that the margins retailers earned on the producer price have increased substantially during lockdown almost entirely due to increases in retail prices, at least for more essential products such as potatoes and onions.

Full Content: Citizen

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.