The introduction of a weekly ten percent discount at several grocers has not caused the stores to raise prices, according to Government.

Home Affairs Minister Michael Fahy said a recent report showed an “usual price increase” for some products, but the cost of food staples have largely not increased.

“We were pleased to see that since the introduction of our Throne Speech pledge that grocers were not being unscrupulous in raising prices, and consumers were able to genuinely benefit,” he said. “We view this as a demonstration of shared sacrifice on the part of our local grocer partners.

“It is hoped that in the near future we can announce additional incentives that will benefit Bermudians.”

Government announced in last year’s Throne Speech that it had worked with MarketPlace, Lindo’s and Supermart to offer customers ten percent discounts every Wednesday, but some critics expressed concern that rising food prices would limit any potential benefit to the public.

In response to the public scepticism, Sen Fahy said Consumer Affairs was tasked with producing a Price Monitoring report, looking at how the cost of food staples was affected.

Between November, 2013 and January, 2014, representatives from Consumer Affairs monitored store prices on a weekly basis, testing the cost of a shopping basket list containing 60 products.

Sen Fahy said: “We undertook to conduct a monitoring exercise because we wanted to evaluate if there was a fluctuation of prices during the Wednesday discount day.

“Other than the usual price increase for certain products, there was no evidence to indicate any significant increases occurred on products listed on the staple food basket list.

“In fact, what the study did reveal was that it would not be in the grocery stores’ best interests to engage in potential price hike practices which could be in breach of Bermuda’s laws.”

He said that if there were any price variances, it was due in part to local suppliers offering the supermarkets various deals and discounts.

“Additionally costs have been affected by rising food prices globally, due to extreme weather which has affected harvests worldwide,” Sen Fahy said.

“Shortages drive prices up. As an example, the report revealed that the price of beef is expected to rise as ranchers suffered great loss of cattle and feed crops due to severe weather and those that survived were taken to market earlier.

“This has a global effect — less meat means higher price per pound due to a cattle shortage.

“As another note, Bermuda imports most of its food supply. This transfer of goods depends on the cost of oil.

“If oil prices go up, so does the cost of shipping, which is absorbed as much as possible by the supermarkets.”

The Royal Gazette has requested a copy of the Price Monitoring report from the Ministry but has not received a copy as of press time.

Independent MP Terry Lister yesterday questioned why Sen Fahy had released his conclusions for the report, but not the report itself.

“People are experiencing significant increases in food costs yet the Minister is telling us that these increases are not occurring and that prices ‘have stayed at a moderate, steady level’,” Mr Lister said. “However he goes on to say ‘other than the usual price increase for certain products’.

“What usual price increase? Which products? The Minister has chosen to study the report, draw his conclusions and to share his conclusions rather than share the report.

“The press release notes a shopping basket list containing 60 products. What are the 60 items used for the study? Share the information so that we can move toward agreement.”

He also noted that Sen Fahy said in the press statement the reason for the report was to measure the fluctuations of prices “during the Wednesday discount day”.

“If this was the Minister’s objective then he may well have been met with success,” Mr Lister said. “However, I am more concerned about everyday prices.

“I am concerned as to what the price of the 60 items was on December 1 and again on December 31 and everyday in between.

“Until the Minster can provide us with this information, I will continue to call for a food price control board.”