Question
Globally, inflation has risen over the past few years as a result of the Covid-19 pandemic. And supply chains have not recovered since Russias invasion
Globally, inflation has risen over the past few years as a result of the Covid-19 pandemic. And supply chains have not recovered since Russias invasion of Ukraine in February last year. This has affected domestic chains. In turn, food producers costs have risen, pushing up the prices for consumers. Asked when food prices could drop, Treurnicht said he could not make any predictions but added: By the looks of it, the producers might have to carry more of these inflationary forces for the time being [instead of passing them on to strained consumers] up to the point where they do not make a profit anymore. Then youll see those costs being passed on fully to the consumer. Pick n Pay said its internal selling price inflation for the first 17 weeks of the second half of its 2022- 23 financial year came in at 10%. In its trading update, it said the group selling price inflation was affected by its Boxer stores greater exposure to commodity categories, where inflationary pressure has been highest. It did not say how much longer it intends to push prices on to consumers because it is in a closed period (the time between the completion of a companys financial results and the announcing of these results to the public). But the retailer did add: As always, we do everything we can to keep prices down for customers.
Describe the role of the consumer in the market environment. Explain how consumers have been affected in the article.
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