Consumer basket hits ZWL$75k
LIVINGSTONE MARUFU
The cost of living for a family of six jumped to more than ZWL$75 000 in the month of January from the December figure of about ZWL$72 000, latest data has shown, as companies price products using parallel market rates.
The worsening economic conditions, the Consumer Council of Zimbabwe (CCZ) said, has triggered the prices of basic goods to skyrocket in the reviewed period.
The deteriorating environment and the haemorrhage exchange rate have pushed prices of basic commodities up on a weekly basis, a development that has left many Zimbabweans living on the margins owing to dwindling purchasing power.
“The cost of living as measured by the CCZ’s low income urban earner monthly basket for a family of six increased to ZWL$75 757.62 by end of January 2021 from the end of December figure of ZWL$72 967.01, showing an increase of ZWL$2 790.61.
“The increase in electricity tariffs as well as incessant power cuts were the major cost drivers in the increase of prices for various commodities. Influence of the parallel market exchange rate to ZWL$230 toZWL$250 as at the end of January 2022 from ZWL$180-ZWL$200 as at end of December 2021 was also a cost driver as some manufacturers and retailers are opting to buy US$ through this platform,” CCZ said.
The food basket increased by ZWL$2 836.75 (11.21%) to ZWL$28 139.57 by end-January 2021 from ZWL$25 302.82 by end of December 2021.
The price of detergents decreased by ZWL$179.64, a percentage of 8.80% to ZWL$1861.55 from ZWL$2041.19.
It is understood that most retailers have gone back to discount their prices in US$ terms which goes against the provisions of Statutory Instrument185.
Apex Council deputy secretary-general Gibson Mushangu told Business Times that the pre-October 2018 salaries will mitigate the inflationary environment.
“There were some adjustments that were made to our salaries to enable us to get US$175 and an increment on our ZWL$ earnings but with a volatile environment wreaking havoc more adjustments need to be made to cushion workers,” Mushangu said.
Rose Mpofu, CCZ acting executive director yesterday urged the government to be firm as profiteering has reared its ugly head with companies that are accessing foreign currency from the auction pricing their products and services using the parallel market rates.
“The world over, no company is making profits as huge as those in Zimbabwe,” Mpofu said.
In a survey conducted by this publication, Zimbabweans are struggling to make ends meet.
“With schools demanding top ups and basic commodities shooting up to the ceiling, we are failing to have a decent meal per day and we run a risk of getting sick due to malnutrition,” a civil servant who works at a new government complex who preferred anonymity said.
Business Times can also report that several companies were downsizing operations, throwing a number of workers onto the streets.
