Thu Feb 04 13:52:00 UTC 2016
Shoprite Checkers pointed out that the food inflation headline in the Business Report of Thursday, 4 February 2016 quoting Food Inflation rising to 8,7 percent is factually incorrect. In the basket of food prices compared, oranges were reflected at a price of zero Rand in the December 2014 basket. This has skewed the overall Rand value of the baskets that were compared.
Markets and Economic Research Centre (MERC) who did the calculation using Stats SA sources admitted their error. If the correct comparison was made the figure amounts to 6.6% versus the published 8.7% which is a substantial difference.
Shoprite Checkers said the Group's own internal food inflation which covers more than 20 000 items for the month of December 2015 was only 1.7%. It has been the lowest December inflation the Group has reported in more than three years. This can be attributed to the fact that Shoprite procured its general merchandise products before the significant depreciation of the Rand. It also reflects the strong Festive Season price promotions which is part of the Group’s low price commitment to consumers.