Zimbabwe family basket goes down in USD

ZIMBABWE’s food basket for a family of six has gone down in US dollar terms to US$440 from US$495 of last month while in local currency, the basket increased by 22,66 percent from $2 958 460,70 to $3 628 944,20, the Consumer Council of Zimbabwe (CCZ) has said.

The consumer watchdog corporate affairs director Mr Phillimon Chereni said among the top shakers and movers in the basket were cabbage, salt, tomatoes, onions and cooking oil which rose by 97,7 percent, 63,7 percent, 56,4 percent, 50,6 percent and 44,8 percent respectively.

Mr Chereni said this is partly attributed to the high demand for the products during the festive season.

“This is partly attributed to the high demand of these products during the festive season. In contrast, water and rates, washing powder, transport and education recorded the least shakers, registering 8,5 percent, 5,3 percent, 4,6 percent and 1,3 percent respectively,” he said.

“As measured by the Consumer Council of Zimbabwe’s low-income urban earner monthly basket for a family of six, the cost of living measured in the local currency increased by 22,66 percent from $2 958 460,70 to $3 628 944,20,” he said.

“In USD terms, the basket decreased by 10,96 percent from US495,04 to US$440,79 during the same period,” he noted.
CCZ said most products which are paid for in USD are attracting a discount, hence the fall in the prices for the basket in USD.

“It should also be noted that most supermarkets have resorted to displaying their prices in US$ form as they are most stable compared to the local currency prices which frequently have to be changed in order to match the lateral market rate.

“CCZ has noted with concern that some products in supermarkets are exclusively in US$ which disadvantages the ordinary consumer who may not be earning the US$ currency.”

“This paradox is attributed to the dual pricing system which CCZ noted in the market. Most products which are paid for in USD currency are attracting a discount, hence the fall in the prices for the basket when using USD displayed prices.

“In line with this, it will be noted that all prices of all products in USD currency moved to the negative in price changes with the exception of only six products, namely cabbage, salt, tomatoes, onions, cooking oil and laundry bar.”-chronicle