Shoprite Checkers pointed out that the food inflation headline in Thursday’s Business Report quoting food inflation rising by 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, who did the calculation using Statistics SA sources, admitted their error. If the correct comparison was made the figure amounts to 6.6 percent versus the published 8.7 percent, 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 percent.
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 are part of the group’s low price commitment to consumers.
Adele Gouws
Public and Customer Relations, Social Investment, Communications and Investor Relations