South Africans who are already battling the rising cost of living could soon be hit with another financial blow, as food producer Premier Group has warned that staple food prices could increase by as much as 5% as municipalities plan to introduce higher tariffs from July.
The company behind Blue Ribbon bread said soaring fuel prices and other input costs are placing pressure on its operations, forcing it to consider price increases across a range of products. The warning comes as consumers prepare for higher municipal bills, including electricity, water, and sanitation charges in several parts of the country.
Premier, one of South Africa's largest food manufacturers, produces and distributes essential household products, including bread, flour, maize, sugar, and yeast. While the company delivered strong financial results this week, it cautioned that escalating costs throughout its supply chain are making some price increases unavoidable.
Premier's earnings rose by more than 27%, while headline earnings increased by nearly 28%, driven largely by strong performances in its Millbake division and the acquisition of Rhodes Food Group. The company also completed its new Aeroton mega-bakery, aimed at improving efficiency and expanding production capacity.
