Consumers: A General Increase in Prices

Prices rising by 20% to 50% on certain productsThe increase in costs at various levels of the supply chain, combined with the adjustments in gasoline and diesel prices, suggests that consumers will face a widespread price increase in the coming weeks.According to Vicky Hanoomanjee, CEO of SaveMax, several factors contribute to this trend. "Production costs in supplier countries are rising, while importers are struggling to obtain foreign currencies, particularly the now more expensive dollar. Additionally, there are increases in freight costs and new delivery and logistics fees," he explains.He believes this accumulation will lead to a cascading increase of between 20% and 50% on certain products. "This is already happening. This trend will intensify. Furthermore, some products—those with controlled prices—are becoming less profitable for importers, which could lead to the withdrawal of certain items," warns Vicky Hanoomanjee. Hence, he calls on authorities for government-to-government agreements to secure better prices on essential products like rice and oil, among others.Assad Peerbux, manager of the Intermart store in Beau-Bassin, adds that there will be a direct impact from the rise in fuel prices on large-scale distribution. "These increases automatically affect delivery prices and then consumers. All products will be affected," he emphasizes. He notes that he has already received notifications from his suppliers announcing the impact of the diesel price increase on their costs. "We should expect price adjustments in the coming weeks," Assad Peerbux adds.In the restaurant sector, Benito Duprat, manager of Benito Grill, explains that suppliers will also pass on the rise in fuel prices. "To maintain service quality, we will be forced to increase our prices if our suppliers raise theirs in the coming weeks," he points out.