Boxer warns of rising food prices as fuel costs increase

Boxer reported that its prices were 2.4% lower on average during the six months ending August 30, representing a saving of approximately R24 for every R1,000 spent. However, the retailer noted that these price drops are narrowing, falling to 2.1% in September compared to 3.1% in August.

Chief Executive Marek Masojada indicated that while the company has attempted to keep prices steady, rising food prices appear inevitable. A primary driver is the increasing cost of fuel; recent increases in petrol and diesel prices have pressured logistics. The Road Freight Association has warned that the cost of transporting goods to shops could rise by 4% to 6%.

Masojada stated that Boxer and its suppliers have absorbed much of the additional diesel costs recently to avoid passing them on to consumers, but warned that the company is approaching a point where these costs may need to be added to food prices.