Prices skyrocket ahead of festive season
TANATSWA KANDENGA
Prices of basic commodities have skyrocketed ahead of the festive season, potentially making the holidays miserable for Zimbabweans, Business Times can report.
Rosemary Mpofu, executive director of the Consumer Council of Zimbabwe (CCZ), said the prices of basic goods increased significantly as a result of increased demand for goods and the depreciating value of the Zimbabwean dollar relative to other major currencies,among many other challenges..
According to a survey conducted this week by Business Times, the price of a 10-kg mealie meal has increased to ZWL$57 427.50 from ZWL$44 175.00 at the end of November, while the price of a 2-litre bottle of cooking oil has gone up to ZWL$26 505.00 from ZWL$25 935,00.
A 2 kg bag of rice is now selling at ZWL$18 553.50 from ZWL$18154.00.
Mazoe drink is now available at ZWL$8835 from ZWL$8 645 is Mazoe drink.
“As measured by the CCZ low-income urban earner monthly masket for a family of six, the cost of living measured in the local currency increased by 8.56% from ZWL$2 958 460.70,” Mpofu told Business Times.
She added: “Given the proposed policy measures in the recently pronounced budget statement, in particular, the increase in the corporate income tax, the restriction of procurement of goods from manufactures and the imposition on levy on beverages, the cost of living is projected to continue to increase.
“The demand for most basic products increases during the festive season and based on the previous trends, suppliers often take advantage and raise their prices during the period. Also, it was noted that some suppliers also introduce false promotions during festive season yet their prices would have been inflated just prior to the festive season.
The local currency has also been depreciating in value at the formal wholesale and also on the parallel market.”
The value of the Zimbabwean dollar declines in relation to other major currencies. This week, the Zimbabwean dollar was trading at ZWL$5 827.79 against the United States dollar on the official market, while the local currency was trading at ZWL$9 100: US$ 1 on the black market.
A lot of formal businesses still set their product prices based on parallel exchange rates.
