TIMES SHOPPER | VERE’S TAKE | Hidden inflation hits shoppers

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There is so much hidden inflation on many items we buy today. Picture: SUPPLIED

Bula vinaka shoppers, a discussion in our newsroom recently turned to a topic that affects every household, the rising cost of groceries. Several colleagues shared stories about how much more they are paying for everyday essentials.

Sophie mentioned that many products she regularly buys have increased by a dollar or more in a relatively short period of time. Items such as canned corned beef, chicken, sausages, butter, fish, tea bags, bathing soap, eggs, potatoes, meat at the delies and washing powder as well as soap seem to be getting more expensive by the day, depending on where one shops.

Harold spoke about another challenge many families can relate to — planning affordable meals. With the prices of chicken and fish climbing steadily, he has been searching for alternative sources of protein to help stretch the family budget. One option he now considers is Nutrela Soya Chunks, a plant-based protein made from soy flour that is often used as a substitute for meat.

As food prices continue to rise, more households are looking at alternatives that can provide nutrition without putting additional pressure on already strained budgets, especially for families that live in the city. What many consumers are experiencing is now being backed by data.

The Consumer Council of Fiji recently released findings from a comprehensive market surveillance exercise conducted between late March and early May this year.

The study revealed that consumers are paying significantly more at supermarket checkouts, not only because of direct price increases but also due to a less obvious form of inflation.

According to the Council, Fiji is experiencing what can be described as “hidden inflation”. While shoppers often notice when shelf prices increase dramatically, a growing concern is the gradual disappearance of discounts many families have relied on to manage their weekly grocery bills.

Retailers are reducing the gap between regular prices and discounted prices.

In some cases, discounts have disappeared altogether.

This means that even when the shelf price appears unchanged, consumers end up paying more because the savings they once enjoyed are not available. The Council’s analysis identified what it described as a “two-tier” inflationary reality.

On one level, many commonly bought household items have experienced sustained price increases.

Products like rice, eggs, cookies, tea bags, bathing soap, sausages, washing powder, toilet paper and cooking oil recorded average price increases ranging from 15 to more than 35 per cent during the monitoring period.

On another level, consumers are losing access to the promotional discounts that previously softened the impact of rising prices.

This as Fiji continues to feel the effects of higher global fuel prices.

Fuel plays a critical role throughout the supply chain, affecting transportation, shipping, storage and distribution costs. When fuel costs rise, businesses often face increased operating expenses, many of which eventually find their way to consumers.

Produce at the market has all gone up and even price-controlled goods are not immune.

While these products remain below the maximum regulated prices, the average discounts offered on them have also declined. As a result, households are still paying more than they did previously. Consumer Council CEO Seema Shandil says the financial burden facing families is increasingly difficult to ignore.

She noted that the Council’s findings provide evidence of a creeping cost-of-living pressure that is not always noticed.

When discounts that families depend on are reduced, consumers effectively lose purchasing power even if the advertised retail price appears stable.

The Council has described this trend as a “discount illusion” — a situation where the retail environment appears unchanged, yet shoppers leave the checkout spending more money.

Another concern is what economists call the “staircase effect”. Prices move up one step at a time but rarely come back to previous levels.

Over time, this creates a new and more expensive baseline for the cost of living.

As global economic uncertainty continues and fuel prices remain volatile, there is a risk that the remaining discount buffers on staple goods could shrink even further, pushing grocery bills higher in the months ahead.

For now, the Consumer Council says it will continue monitoring supermarket prices.

In the meantime, consumers are encouraged to compare prices between stores.

Look carefully for genuine bargains, plan shopping trips in advance and stick to household budgets wherever possible.

For many families, every dollar matters.

As food and household costs continue to rise, smart shopping is not just a good habit.

It is now a necessity.