Cost of living continues to rise

A quick survey of current prices for food and basic consumer goods on supermarket shelves show most items have gone up in price in the past six months, showing increases ranging from 5% to 55% (refer to table below).

The survey carried out last week, compared current prices of everyday items with prices in January 2011 after VAT was increased to 15% under Budget 2011.

The only good news is in the area of garlic, onions and potatoes which have all come down in price notably since January. Potatoes have seen a 40% drop in price – from $2.38 per kg in January to $1.49kg. Onions are down 20% from $2kg to $1.62 and garlic 10% from $3.29 for 500g to $2.95. Carrots are slightly down by 3%.

In the six month period surveyed, the four largest increases registered were for staple food items: sugar, sharps, butter and cooking oil. The price of flour/sharps shot up by 30% from $10.99 to $14.26 for a 10kg bag.

The price of cooking oil (Punja’s Soya Bean) rose 16% from $3.56 to $4.11 for a 750ml bottle.

Rewa butter registered a 21% hike in six months following the latest increase granted by the Commerce Commission which puts Butter at a prohibitive price of $7.34c for a 500g pack. Pre-devaluation (April 2009) butter (500g) sold for $3.29 – a massive 123% hike since then.

The price for sugar has jumped almost 90% in six months from $2.39 (2kg bag) to $4.50. We recall a time a couple of years ago when sugar was selling for 95c a kg.

Another shocker is the current price for cooking gas at almost $50 ($49 a 12kg cylinder) – a 31% hike from its pre-devaluation price of $37.50.

While on fuel, the price of unleaded Super has jumped 60% since pre-devaluation – from $1.57 a litre to the current price of $2.50. Taken over a 6 month period from January 2011, the increase is 5.5%.

The increase in the price of Diesel for the same period (since pre-devaluation) is even more shocking – up almost 80% from $1.33 per litre to $2.37 ltr. In the six months from January it has risen 15%.

In the beverages range, the cost of Milo has jumped 55% from $6.99 (500g) to $10.79.

In the meat section, lamb/mutton cuts have increased in price by about 5% while Crest chicken has gone down slightly – 1.6% from $12.59 to $12.39 for a size 15. Canned fish and meat have increased by between 5-7% in price since January.

Prices for one or two items surveyed have remained static over the six month period such as Cold Power laundry detergent and Breakfast cracker biscuits.

The survey did not take into account market produce, prices for which have gone up 100% or more in the past six months since VAT went up to 15%. Gone are the days when you could pick up vegetables for $1 a bundle – the $2 bundles are now noticeably smaller.

Tomatoes continue to be expensive fluctuating at between $10-12 a kg, tiny ones at that, despite them being in-season.