GIS - Dec 04, 2012: The Price Observatory conducted its eighteenth pricing exercise last week.This is also the fifth survey of the third round which started in July 2012, with a revised list of outlets and products. The main finding is that the average cost of the 60 targeted products has decreased by 1.5% from Rs 6,179 in October to Rs. 6,089 in November 2012. This is the net result of a decrease of 0.5% (from Rs. 2,714 to Rs. 2,700) in the average cost of the 40 “cheapest” products, and a decrease of 2.2% (from Rs. 3,465 to Rs. 3,389) for the 20 branded products.
Grand Port has been the cheapest district from July to November. The most expensive district was Moka in July and August, Port Louis in September, and Savanne in October and November. The price difference between the cheapest and the highest-priced district for the 40 “cheapest” products increased from Rs 573 (24%) in October to Rs 617 (27%) in November. The difference for branded products increased from Rs 376 (11%) in October to Rs. 398 (12%) in November, while that for all 60 products combined increased from Rs 948 (17%) in October to Rs. 968 (17%) in November.
The percentage of promotional prices decreased from 63% in October to 60% in November 2012. For the 40 “cheapest” products, the percentage decreased from 62% to 60% whilst for the 20 branded products, it decreased from 64% to 61% during the same period.
The average cost of the 40 “cheapest” products increased by 0.8% in August and by 1.2% in September, then decreased by 2.9% in October and by 0.5% in November. The average cost of the 20 branded products increased by 1.3% in August and by 1.1% in September, then decreased by 1.6% in October and by 2.2% in November. The average cost of all 60 products taken together increased by 1.1% in August and by 1.2% in September, and then decreased by 2.2% in October and 1.5% in November. It is to be noted that from July to November, 14 outlets showed cumulative price decreases of up to 16% while 9 showed increases of up to 5%.
The aim of the Price Observatory is to maintain competitive pressure by constantly changing strategies without being perceived as favouring any particular outlet. The list of outlets and products is reviewed periodically to counteract the effect of familiarity with the targeted products, further stimulate competition, and ensure that price reductions are not applied solely to targeted products.