GIS - August 13, 2012: The Price Observatory (PO), operating under the aegis of the Ministry of Industry, Commerce and Consumer Protection, published on 10 August 2012 the findings of the fourteenth pricing exercise. During a press conference, the Chairperson, Mr. Harish Bundhoo, also launched the first survey with a revised list of outlets and products.
The PO outlined that Grand Port, Pamplemousses and Rivière du Rempart are among the cheapest districts, while Moka, Savanne and Black River are among the most expensive. The districts of Plaines Wilhems, Flacq and Port Louis are in the middle group.
The methodology used comprised a collection of a sample of 23 outlets representative of regions and shop-signs. A first list of 40 products among those commonly purchased was used to compare the evolution of prices over time, while a second list of a total of 27 brands of 6 products was used to compare the pricing policies of shop-signs. For the 40 cheapest products, there were 506 promotional prices compared to 324 for the branded products.
Moreover, the price range between the cheapest and the highest-priced outlets varied from 35% for the 40 “cheapest” products to 19% for the 27 branded products. As reported, the variation in price across outlets was much less for the branded products.
The aim of the PO 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 only by sampled outlets to targeted products only.