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The Competition Commission warned that consumers could be facing opportunistic price increases for sunflower oil.
The Commission released its third Essential Food Pricing Monitoring Report, which also noted that processor prices increased far more this year than the price of sunflower seeds.
This is commonly referred to as the ‘rocket and feather effect’ whereby prices are quick to increase and slow to decline where there is cost inflation in the value chain.
Sipho Ngwema of the Competition Commission, says their two previous reports noted that the annual inflation for edible oils and fats, was significantly higher than overall food inflation.
This was due to risks posed by the conflict in Eastern Europe, as South Africa was a net importer of sunflower seeds.
Ngwema says the Commission will continue to monitor food prices, as the global food markets begin to normalise.
