Skip to main content

Cabinet approves food price action plan

| Economic factors

Cabinet has directed the Economic Cluster to put in place an action plan on food prices, food security and access to food.

“Cabinet has approved that the Economic Cluster must put in place an action plan on food prices, food security and access to food,” minister in the presidency Khumbudzo Ntshavheni said. 

Briefing the media on Thursday, 31 August, Ntshavheni said the Competition Commission has been monitoring essential food prices pursuant to price gouging concerns raised since the declaration of the State of Disaster in March 2020. 

She said that the continuation of essential food price monitoring is motivated by the need to ensure affordable and accessible essential food products for consumers. 

“The Commission has noted the ‘rocket and feather’ effect, where prices are quick to rise often in excess of cost increases and slow to fall once cost pressures decline. It has also flagged the concentrated nature of the food and retail markets as a concerning contributing factor.” 

At the briefing held in Pretoria, the minister said that Cabinet has noted the Commission’s recommended measures including market inquiries to address structural features in the market that lead to high food prices and low levels of competition. 


Pin It

Related Articles

‘Desperation is the new normal’ for South Afric...

By: Opinion – IOL Business Report South Africans have been collectively waiting with bated breath for some small financial reprieve from the relentless price hikes of the past few years that have driven them to the brink of despair, chief among t...

SA retail sales up 2.3% in March

Stats SA reports that retail trade sales increased by 2.3% year-on-year in February 2024. The largest contributor to this increase was general dealers (6.4% and contributing 2.8 percentage points).

Massive tax increases to fund NHI – destroying ...

By: Shaun Jacobs – Daily Investor Funding the government’s National Health Insurance (NHI) scheme would require a 31% increase in personal income tax, or a 6.5% increase in VAT, or a ten times increase in payroll tax, threatening South Afric...

SA consumers’ disposable income eroded by high ...

By: Given Majola - IOL Business South African consumers’ disposable income was being eroded by persistently high interest rates and inflation (especially food inflation) while a lack of any meaningful economic growth was constraining their salaries.

Nearly half of South Africans struggle to affor...

By: Xolile Mtembu - IOL South Africans spend over one-third of their income on food, and growing costs have a significant impact on their finances.