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Grocery bills more bad news for families

Bill English

National Finance Spokesperson

Wednesday 27 September 2000

Grocery bills more bad news for families

Supermarket chains are this week lifting prices of more than 1100 items, National Finance spokesperson Bill English revealed today.

"Price rises of 2 to 5 percent are being processed virtually as fast as the supermarkets can handle them.

"I've also been told of some lines going up by 10 to 15 percent as supermarkets carry the brunt of the low dollar, the freeze on tariff reductions, more expensive petrol and imported goods and higher manufacturing costs.

"The price rises come at a time when family budgets are under pressure from petrol price increases, so this is more bad news for us all.

"Supermarkets have been trying to hold off the higher costs caused by more expensive petrol and imported goods - but they can't do it any longer.

"Most families have been feeling concerned about how they are going to make ends meet, where they will get the money to pay for petrol bills, the mortgage, cigarette prices and now it's rising food prices.

"Both Progressive Enterprises and Foodstuffs have been publicly warning of price hikes in recent weeks. We know that many of those increases are being posted today.

"These price increases come on the back of a pessimistic consumer confidence survey. People are worried - but the Government is dismissing their concerns.

"We've got into this position because of the Government's mismanagement of what had been a strong economy. But now the chickens are coming home to roost.

"The Government must explain why it is pushing policies that make this situation worse than it needs to be."

Ends


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