Higher and higher

~ Building materials, stationery, vehicle spare parts join the growing list of items going up in price

Amidst rising costs of essential goods such as food items, gas, and fuel the prices of other items ranging from building material to stationery have shown a steady increase over the past few months. A survey by The Sunday Times has revealed that most hardware items had increased by about 10% to 15% over the past six months.

The Manager of A.N.S. Hardware Store said that items such as paint had increased by 8% while PVC pipes and fittings had increased by an average 10%.“Increased transport costs and import duties have added to the increase in the prices of these items. My shop has been in operation for only five months and I have already witnessed many price hikes on all the items in my shop,” he said.

He said that a metre of flexible wire, a commodity bought frequently, had risen from Rs.18 to Rs.22 within just three months. The shopkeeper said even items such as cement had risen by Rs.15 last month and was now over Rs.700 a bag.“No matter how much we increase these prices the consumer has to purchase them because they are essential for construction. Inspite of the price increase the demand remains the same.

Meanwhile, the prices on furniture have also increased as a direct result of a shortage of teak wood which has sparked off a 35% increase on teak wood prices. Owners of some furniture shops in Colombo said prices on all wood items had increased dramatically over the past few months.

The price of a five foot bed had increased from Rs.7,500 to Rs.9,500 since January 2007 while even a tin of thinner had increased from Rs.400 to Rs.525. One shop owner said these increases had caused an immediate drop in sales as most people are only buying essential items.

“Middle class families are our regular customers and they are the ones who are most affected,” one furniture seller said. The price of glass had also increased within the past three months as the retail price on a square foot of mirror glass had increased from Rs.90 to between Rs.130 and Rs.140. Prices on regular glass had also increased by Rs.20 with the current retail price being Rs.65 a square foot.

The price of a plastic chair had risen by almost 100% within the past nine months while shop owners claim that the profit on a chair sold had not changed.“At the beginning of the year the price of a plastic chair was Rs.375 now it is almost Rs.700 but the profit has not increased from Rs.50 per chair,” one shop owner complained.

Owner of D.G. Karunaratne, K. Nilarachchi said his bathroom-fittings business had suffered a big loss within the past few months due to an increase of 10% to 15% on many of his items.“Purchases have reduced by at least 50% over the past few months. There is little I can do to control these price increases because of the increasing taxes on all items,” he said.

Items such as vehicle spare parts have also not escaped inflation with small electrical repairs and the price of spare parts such as fan belts going up by 15%. Owner of Vishva Enterprises on Darley Road S.S. Fernando said, the price of a light bulb had increased by 10% over the past three months.

Vehicle spare parts shop owners in Panchikawatta also complained about a drop in their sales.They said prices had increased by an average of 8% to 10% on almost all items within a short period of three months.

Owner of Kumara Motor Dealers said prices on filters had risen by almost 15% within two months while the cost of a car battery had increased by an average 20%. The Manager of Jayantha Traders said that prices on items such as tyres had also risen by 10% to 15% over the past six months.

“We have seen varying price hikes on tyres depending on the brand and size. Some brands have increased by Rs. 500 to Rs. 700 while others by as much as Rs. 2000,” he said. Stationery items too have gone up in price with a carbon ball point going up by a rupee within a few months and a pack of 500 blank A4 papers going up from Rs.325 to Rs.375 within a year.

Rahal Communication’s manager who had been selling these items till recently said he had stopped selling them because it was unprofitable to do so.