Prices of basic commodities stabilise
CLOUDINE MATOLA
The prices of basic commodities in both the formal and informal market have stabilised, largely due to the tight monetary policy stance the was implemented by the central bank, Business Times
This has caused the inflation rate to be stable.
In June, the month-on-month inflation rate f was 0% in ZiG terms, while there was a -2.4% deflation in US dollar terms, indicating a decrease in the cost of goods and services.
However, the annual inflation rate in US dollar terms, shot up to 3.8% in the month of June from 3.5% in May.
When inflation is rising, it implies that consumers will have to spend more to buy the same goods.
Speaking at a post-Cabinet briefing on Tuesday this week, Information minister Jenfan Muswere said: “The Second Quarter of 2024 was largely characterized by stability in the prices and availability of basic commodities across all provinces, both in ZiG and USD terms. The ZiG currency slightly appreciated in value by 0.51% against the US$ during the period under review, with the tight monetary stance that has been maintained having resulted in exchange rate stability, which has translated into the stability of prices of basic commodities on the market,” Muswere said.
Minister Muswere also said prices of 10kg packs of mealie-meal has been steady ranging between ZiG100.01 and ZiG103.8 as well as US$5.30 and US$8.50.
Also 2l bottle of cooking oil are ranging between ZiG54.63 and ZiG56.50 as well as US$3.30 and US$4.70.
“The market is well stocked with mealie-meal and its price has been stable, ranging between ZiG100.01 and ZiG103.8, and between US$5.30 and US$8.50 in United States Dollars currency for 10-kilogramme pack. The price of a 2-liter bottle of cooking oil has been stable as well, ranging between ZiG54.63 and ZiG56.50, and between US$3.30 and US$4.70 in United States Dollars. Bread price has also remained stable, ranging between ZiG14 and ZiG14.50, and between US$1 and US$1.20 in United States Dollars. Sugar supply has relatively improved countrywide and its price has remained stable during the months of May and June 2024. The price of laundry soap remained unchanged, ranging between ZiG23.13 and ZiG23.50 in local currency,” he said.
In addition, Muswere said the formal sector and informal sector prices of the basic commodities are slowly converging and prices of cooking oil and mealie-meal are decreasing due to the measures that were put in place to deal with price increases witnessed during the Q1 2024.
Muswere added:”There is improved ZiG uptake in the market, with transactions on Point of Sale swipe machines seen to be dominant in major formal retail outlets. Most outlets have pegged their products in ZiG, while some few still display the prices in United States Dollars, although the prices are payable in both currencies. In most retail shops, 80% of the formal retailers’ transactions are currently in ZiG while 20% are in United States Dollars.”
