Food Prices Shooting Up - despite fuel price dropping

The Inflationary Effect of the long period of high oil prices ($100+) still has to filter through the market.

clipped from www.businessday.co.za FOOD retailer Pick n Pay has summoned its suppliers to an urgent meeting to discuss high and rising food prices, which have continued upwards despite a recent fall in fuel prices. In a strongly worded letter to 30 of the group’s largest suppliers, CEO Nick Badminton says “in many cases, we are being asked by our suppliers for considerable cost price increases”, which he describes as “untenable — and in the case of our customers and the media, indefensible”. Pick n Pay is asking it suppliers to exercise “serious restraint” with their price hikes. The meeting, to be held next week, comes as food prices continue on an upward spiral despite a sharp reduction in fuel prices. Badminton said there was an “expectation from consumers, government spokespeople and the media that grocery prices would therefore come down in line”.