Cost of living hits ZWL$133K

LIVINGSTONE MARUFU/FAITH MADZINGA

The cost of living  for a family of six  surged 36% to ZWL$133 171.20 in May 2022 from ZWL$98 279.13 in the previous month following a relentless spike in price increases, latest data has shown.

The Consumer Council of Zimbabwe (CCZ) said the food basket increased by 62.56% to ZWL$62,820.36 in the reviewed period from ZWL$38,644.51 by end of April 2022 with the price of detergents increasing by more than half to ZWL$4536.84 from ZWL$2998.12.

“This steep increase in the total figure of the basket has been caused by increases that were made of non-food items such as transport and electricity. Generally, all products on the basket have increased; the most notable ones are margarine by 119.65%, cooking oil by 43.75% , rice  by 85.14% and flour by 178.61%.

“Most of these increases follow the parallel market rate, for example local tuck shops are now demanding payment in US$ which is now at ZWL$450 for US$1,” CCZ said.

The rise in the cost of living is likely to put employers and workers on a collision course as the latter push for salary reviews amid a deteriorating economic environment.

The largest employer, government, is under pressure from its employees that have approached parliament to force a salary review.

The new cost of living data means that more than 90% of the employees are the “working poor” as they earn far below the threshold.

Zimbabwe’s economy is currently experiencing a sharp increase in prices for basic commodities especially cooking oil and mealie-meal which are fast disappearing from shop shelves because of speculation by both consumers and suppliers.

“The CCZ has noticed that some retailers [mostly local tuck shops] are selling a two-litre unit of the product for between US$5,50 and US$7, resulting in consumer panic and a further spike in prices.

“The surveys have revealed that some retail giants were limiting the number of commodities such as cooking oil per customer to curb hoarding,” CCZ said.

A survey conducted by Business Times showed that some supermarkets who still have these basic products in stock are failing to display the prices of the goods and services they are providing which is illegal in terms of the Consumer Protection Act.

Section 26 of the Consumer Protection states that the consumer has the right to disclosure of information regarding goods and services and disclosure of prices.

CCZ  said some suppliers were also charging different prices from the ones displayed on the shelves and the actual price they expect a consumer to pay on the till which is also a violation of consumer rights according to section 26 subsection 5 of the Consumer Protection Act.

It states that no supplier shall require a consumer to pay a price for any goods or services higher than the advertised price.

The Confederation of Zimbabwe Retailers attributed price increases to Russia-Ukraine which has had a sprawl effect on the goods in the value chain due to the increase in the price of fuel and raw materials from Eastern Europe.

“Other than inflation and exchange rate, the on-going war between Russia and Ukraine had a knock-on effect on prices of goods and services locally.