Expect hike in food prices: CPL

By PETER ESILA
CONSUMERS should brace themselves for an increase in the prices of basic food items by 10 per cent or more soon, says City Pharmacy Ltd (CPL) chief executive officer Navin Raju.
Raju said CPL through its Stop & Shop (SNS) outlets in Port Moresby did not have any alternative but to increase prices.
“Consumers in PNG will be facing the biggest squeeze in their finances in the coming months with significant price increases in basic food items and groceries,” he said.
“Major manufacturers and suppliers in PNG have indicated significant price increase, and retailers such as SNS do not have much option but to pass the increases to our customers.
“Some of the increases on items such as rice, noodles and milk are as high as 10 per cent with further increase to follow.”
He said the price hike issue was global and not confined to PNG.
“The reason is the increasing labour, energy, fuel and transportation costs,” Raju said.
“This is (compounded by) production difficulties caused by severe weather conditions and the Coronavirus (Covid-19) pandemic.
“All have mounted at the same time.”
He said delivery supply times had also doubled.
“The supply chain issues are having an impact on the shipment times, and with the shortage in oil and wheat worldwide due to the Ukraine war, the delivery times have almost doubled,” he said.
“This is the cause of the empty shelves and shortages.”
Raju advised customers to be smarter with their shopping.
“Don’t stick to your usual brand,” he said.
“It’s always worth checking the price difference by stepping down a level to the supermarket’s own brand, or its value/basic range if you’ve yet to buy that.
“In most cases, you won’t be able to tell the difference.
“If you do, you can always go back to your normal brand for specific items.
“Before filling up your trolley, see what offers you can find.”
Port Moresby Chamber of Commerce and Industry president Rio Fiocco warned in June that businesses were facing “challenging times” because of the hike in fuel prices, shipping costs and supply chain disruptions.
He said businesses would eventually have to pass on the added costs to customers in order to survive.