LIVINGSTONE MARUFU
Zimbabwe’s monthly cost of living for a family of six shot up to ZWL$48 000 in the month of August from ZWL$41 000 in July, official data from the Consumer Council of Zimbabwe (CCZ) shows.
The CCZ said price increases have continued to eat into the pockets whose earnings are far below basket figure. Most workers are earning less than ZWL$30 000 a month.
The central bank has been availing to retailers through the foreign exchange auction system.
But, the retailers continue to peg the prices of goods using the parallel market rate.
“The cost of living as measured by the Consumer Council of Zimbabwe’s low-income urban earner monthly basket for a family of six increased to ZWL$48 353.38 by the end of August 2021from the end of July figure of ZWL$41 406.82, which is an increase of ZWL$6946.56 or 16.78%.
“The food basket increased by ZWL$875.40 or 5.36% to ZWL$17 202.54 by the end of August 2021 from ZWL$16 327.14 by the end of July 2021,” CCZ said.
The price of detergents increased by ZWL$197.16 or 17.44% to ZWL$1327.84 from ZWL$1130.68.
Most of the basic commodities prices have increased, according to CCZ.
“As CCZ, the increase in the total figure of the basket is attributed to the price increases shown above especially on the basic food items, due to inflation; influence of the exchange rate, speculation by consumers(fuelling demand) and in exceptional cases the parallel market,” CCZ said.
The further relaxation of the lockdown regulations has resulted in an increased movement of consumers, activities of the market place and change of consumer behaviour patterns emanating from the eroding of consumer buying power.
The market is slowly adjusting to the displaying of prices in both US$ and Zimbabwe dollars as provided for by the Statutory Instrument 185.
CCZ observed that most of the big supermarkets are complying with Statutory Instrument 185.
The Zimbabwe Congress of Trade Union president Peter Mutasa told Business Times that everything was pointing towards the 2007 and 2008 hyperinflationary environment as the cost of living continued to go up at an alarming rate.
“The workers are in trouble as evidenced by various teachers’ failure to report for work. Workers are working only for food with no capacity to pay fees for their children hence we are in serious trouble,” He said.
“Some Chinese companies are paying as low as ZWL$8000 but let us average the wages to ZWL$15 000 and with that amount, the worker cannot afford basic commodities which is very terrible for workers.”
This survey is conducted every month.
The total cost of the food basket and the price of each commodity are arrived at by averaging prices gathered from retail outlets throughout the country.
The basket is a fairly accurate depiction of the cost of living in urban Zimbabwe.
