For Sarah Perez, who is the head of her household, it is a constant struggle to keep up with rising food prices.
Perez lives in Chaguanas with her daughter and two grandchildren.
Often, meals prepared are shared between the members of her household and her ex-husband who visits frequently.
“Things are very expensive. Everything gone up,” Perez said as she shopped for groceries at a Chaguanas supermarket.
Fast food, though sometimes cheaper than a home-cooked meal, is not a regular option for her family.
Yet, as prices increase, she cooks less.
“When I cook on Sunday, I cook enough so that it lasts until Wednesday. We don’t eat something different every day.”
Still, changes in lifestyle, though helpful to her pocket, does not ease the full effect of ever-increasing food prices.
“When I go to the grocery today I will pay $20 for something, by next week that same item is $30.”
She buys basic items such as oil, flour, rice and sugar in bulk, and budgets separately for this.
Even the items she buys in bulk are increasing in prices.
“I used to pay $95 for a sack of potatoes up to last year. Now it is $165.
“I bought two chickens the other day and it cost me $140. Long time I could get three chickens for $100 but that doesn’t happen anymore.”
Her typical daily meal is rice, peas and a meat.
On Sundays, macaroni pie and callaloo is added to the mix.
Using cost saving measures like buying in bulk or double checking that soft drink is closed tightly after one use at home so it lasts longer are tactics Perez uses to ensure money is not wasted and she gets the most out of her purchases.
Food prices
increasing steadily
Between August 2015 and August 2016, the Central Statistical Office (CSO) recorded an increase in food inflation by 7.6 per cent.
The rate of food inflation, according to the CSO’s Index of Retail Prices, has been rising steady over the one-year period.
While food inflation is not an indication of overall (headline) inflation, it does contribute to the figure.
More importantly to citizens, it reflects the change in prices, spending and household budgets and impacts the financial decisions they make daily.
The CSO’s figure for food inflation seems tame compared to the complaints of shoppers at local supermarkets, who unanimously felt that prices were increasing at ridiculous rates and in unpredictable manners.
Food inflation is naturally volatile as it depends on a number of variables.
Comparing 2015 and 2016 prices
In 2015, one week before the national budget, the Business Guardian published prices for a list of items.
Last week, the Sunday Guardian got prices for 26 of these items and compared the totals, which showed a 22.3 per cent increase in this specific food basket over the course of one year.
A tin of crix moved from $110 in October 2015 to $140.69 in September 2016, although the 12.5 per cent VAT added to the item showed an increase to $123.75.
While a 10kg all purpose flour kept its 2015 price of $59.99, items like split peas increased from $16.95 for five lbs in 2015 to $19.85 in 2016.
Toilet paper moved from $87 for a 48 roll package, to $106.
The Guardian survey undertook a completely different methodology to the CSO. Where the Guardian used prices from one grocery in one specific part of the country, the CSO uses different types of data to arrive at an index.
Economist: Lower income groups more largely affected
Economist Dr Ronald Ramkissoon, in an interview with the Sunday Guardian on Friday, said the CSO index was not a change in the price, but a value computed which reflects the increase in prices.
“It takes into account that the expenditure of different people would be different.
“You might spend one per cent of budget and another person would spend ten per cent and that is taken into consideration.
“It is not taking the cost of items.”
He said the increase in food prices would impact different socio-economic groups in different ways.
“If I spend ten per cent of my salary on food and prices increase by nine per cent, that means something different to me, compared to someone where food is 40 per cent and 50 per cent of their income,” said Ramkissoon.
He said for lower income groups, food was a larger proportion in their basket of expenditure so it would matter more.
“There is that, but there are several issues around food prices, it is what people spend, whether they are spending because items are more nutritious or is more convenient.
“A lot of the expenditure on food is in fact hurting us rather than helping us across the board. You spend a lot on food but very little on nutrition.”
He said the cost of food and spending on food had a spinoff effect on how much the country spent on health and even on demands placed on Government and private sector companies for wage increases.
‘It’s expensive to eat healthy’
Perez admitted that she sometimes did not make the most efficient choices.
“Soft drinks are cheaper than juice,” she explains.
“It’s expensive to eat healthy.”
Still, she said she attempts to include proteins and starches and other nutritious items on her plate.
“I don’t use salads though. Lettuce is expensive.”
SATT: We anticipated 17-21 per cent rise
Supermarket Association President Dr Yunus Ibrahim said they had anticipated immediately following the budget that prices would increase by 17 to 21 per cent within the year.
“Some of it would be due to the VAT, and additional issues like access to US dollar but the prices are still trending upwards.
“The prices have been increasing slowly but surely. There was the US component, the increase in fuel so increased transportation costs, shipping and the removal of many of the food items from the zero-rated list.”
He said direct taxation had affected the cost of food.
“It has nothing to do with supply of the product, drought or scarcity. It’s a combination of things which have driven the prices up.”
He said while Government must be commended for not letting the dollar float too high, businesses wanted the value of the US to decrease further.
“Praise the Lord, they must be commended for not getting the dollar to float too high. We would like it to come down.”