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6 Shocking Reasons Prices Stay High Despite Recent Drops

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6 Shocking Reasons Prices Stay High Despite Recent Drops
Image source: Defi Media

As the cost of living looms large, recent reductions in the prices of some essential goods have failed to deliver the real relief that consumers desperately seek. While certain prices have indeed fallen, others have sharply risen, leaving many families to contend with the ongoing strain on their finances. Consumer advocacy organisations are passionately calling for effective measures to protect struggling households.

Uttam Sumaroo, General Secretary of Masters Express, acknowledged that although the prices of some essential products have decreased, others have risen significantly.

According to Minister of Commerce Michael Sik Yuen, Mauritius has seen a drop in the cost of several key items since the start of the year.

He attributed this decline to favourable exchange rates and reduced profit margins, affecting products such as baby food, cereals, canned goods, and dry grains.

Yet, amid these claims, the promised relief appears to be nothing more than an illusion.

Consumers, beset by the relentless escalation in the prices of other necessities, find it increasingly difficult to perceive any notable easing of their financial burdens.

Suttyhudeo Tengur, President of the Association for the Protection of the Environment and Consumers (Apec), confirmed that while some prices have fallen following the introduction of the “Mark-Up”, these changes only impacted a small fraction of typical household expenditures.

“The reductions are minimal, representing merely a tiny portion of consumer purchases,” he stated.

With prices of other goods continuing to rise, Tengur explained, “By month’s end, consumers often find themselves tightening their belts when shopping.”

One thing is evident: “Consumers still remain far from relief.”

Assad Peerbux, Manager of Intermart in Beau Bassin, shared a similar perspective, noting that despite the recent price drops, the overall impact remained insufficient to significantly ease household budgets.

Jayen Chellum, Secretary of the Consumers’ Association of Mauritius (Acim), added that it is unrealistic to expect immediate relief for consumers in just a few weeks.

“While some prices have decreased, consumers do not feel it for two main reasons: the reductions are gradual and affect only a limited selection of products,” he explained.

Consequently, household monthly expenses remained virtually unchanged.

Chellum pointed out that prices for vegetables have noticeably increased recently.

“In fact, the Consumer Index published last month revealed that the steepest rise in prices was for vegetables,” he remarked.

In Masters Express supermarkets, Uttam Sumaroo confirmed that deflation is indeed evident in certain staple items:

“We have seen reductions in the prices of cooking oils, pasta, and canned goods,” he asserts. However, he quickly added, “These drops do not make a substantial difference to consumers’ wallets.

While some goods are cheaper, others have conversely become more expensive. Ultimately, families continue to endure the steady erosion of their purchasing power.”

Peerbux at Intermart shared similar sentiments, noting that, in light of recent price cuts, the overall effect has been too limited to help households, as the prices of local products continue to rise, effectively negating reductions seen in other areas.

Finding Solutions for Consumers

Suttyhudeo Tengur advocated for importing goods from countries where prices are lower.

He suggested that the State Trading Corporation and the Agricultural Marketing Board could take crucial steps to help alleviate the financial burden on consumers.

“These agencies should consider sourcing substitute products from regions with more favourable pricing, particularly Arabic nations and those in East Asia,” he advised.

Tengur offered a striking example: a box of Kraft cheese from Saudi Arabia is significantly cheaper than its Australian equivalent, despite both being made from the same ingredients.

Jayen Chellum believed that consumers need to take a more responsible approach and manage their budgets effectively.

“They should avoid excessively priced items and look for more affordable options,” he recommended.

He also urged that price controls should extend to a wider variety of products, particularly those experiencing excessive increases.

“Incentives should also be introduced to encourage local production,” he added, urging greater imports from nearby countries to help mitigate high shipping costs.

Consumer Perspectives

Marie Christina Annabelle Iramon, a Customer Service Professional, shares her frustration: “I don’t know about others, but for me, the prices of essential goods remain high—some are still rising.

For instance, powdered milk, sugar, and oil remain expensive. Even with the salary compensation introduced at the start of the year, I see no improvement in my purchasing power.”

Manisha Mungur Deepchand, a homemaker, expresses her concerns, saying, “Prices keep increasing, and often these hikes are inexplicable.

Take vegetables, for instance; there haven’t been any major cyclones or heavy rains, yet their prices have jumped.

The situation in supermarkets is even worse; staple goods are becoming pricier while their quality and quantity decline.”

As economic pressure mounts, it is becoming evident that many families feel neglected, struggling to keep up with their expenses while hoping for meaningful changes in the relentless cost of living crisis afflicting the nation.

Source: Defi Media

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