Look at why producers are passing the buck to consumers, watchdog on cost of living
Prices of vegetables and meat has been rising for the past months - AFP
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SHAH ALAM - A consumer watchdog says government needs a comprehensive approach to tackle the rising "cost of living" crisis as producers have to bear the brunt of price increases of livestock feed, labour shortages at factory level, resulting in passing the buck to consumers.
Indrani Thuraisingham, secretary, of Era Consumer Malaysia proposed to Putrajaya to look at UK to reduce cost of goods.
"Although Consumer Price Index (CPI) may be lower than in other countries such as Singapore, United Kingdom, United States but this is due to the fuel subsidy together with other subsidies, price ceiling and control measures which does not really reflect cost of living," she said in a statement.
She said high producer price means consumers will pay more when they buy.
Government’s action of doling out cash transfers to low-income consumers are short term measures to put off immediate effects of inflation on people but it is unsustainable, she said.
The government spent RM80 billion in this year’s subsidies.
She urged the Domestic Trade and Cost of Living to do more with its price monitoring mechanism using technology and innovation to collect relevant data on price hikes and not merely rely on volunteers’ feedback .
For example, in the United Kingdom, she said a consumer association called Which? in their monthly supermarket inflation tracker recently found that prices of supermarket’s own-brands ranges have gone up sharply compared to the branded foods.
"Although they still tend to be cheaper than the branded ones, Which? is calling out to supermarkets to commit to clear pricing, better access to budget ranges in all their branches and to offer promotions for those who need them the most.
"Which? tracks and compares prices of 20 popular categories of food and drinks products at eight major supermarkets to see how inflation is impacting everyday products.
"The figures are weighted based on supermarket market share and sales volume of each product category.
"The tracker is able to reveal which supermarkets have the highest and lowest inflation every month, which types of food and drinks are rising in price the fastest, how branded groceries compare to own label ones," she said.
Instead of CPI, a comprehensive Food Price Index that is averagely weighted and derived from a networked national supply chain data management platform that links farmers, producers and retailers is established.
Indrani also said targeted fuel subsidies for those in the B40 group as well as the lower M40 group must be implemented as soon as possible.
The Department of Statistics Malaysia (2020) revealed that nearly 580,000 households fell from M40 to B40 group in 2020 and may now be bordering between B40-M40 group.
"The government needs to address this vulnerable groups as well because people losing part of their income is contributing to the cost of living as well".
She further urged the government to intervene to discourage profiteering and ensure farmers, producers and consumers interests are taken care of.
"Big supermarkets have the ability to make a difference to people struggling through one of the worst cost of living crisis," she said, adding that a transparent system of issuing approved permits (APs), directly to retailers to prevent manipulation in the food supply chain.
