Source: Basic commodities prices stable | Sunday Mail (Local News)
Nokuthula Dube
PRICES of basic commodities have remained stable over the past three months — a survey by The Sunday Mail shows.
This comes as the country’s month-on-month inflation has declined from a high of 74,5 percent in June, to -15,3 percent in July, to -1,3 percent in August.
It however increased marginally to 1 percent in September.
A survey of several supermarkets revealed the average prices of some basic commodities.
A loaf of bread cost $6 000, 2 kg sugar ($16 000), 500g tea leaves ($11 000) 2 kg rice ($13 000), 2 litres cooking oil ($20 000), 10 kg maize meal ($36 000), 1 kg salt ($2 500), and 2 kg flour ($12 000).
The prices are reflective of the movement in the official foreign currency rate. Meanwhile, the National Consumer Commission (NCC) has said at least 160 businesses were prosecuted for various offences in the last two months.
In an interview with The Sunday Mail, NCC chairperson Dr Mthokozisi Nkosi said they are continuing a blitz on businesses to check compliance.
“Last week, we were in Masvingo and we did 300 inspections. More than 90 businesses were prosecuted while 30 compliance notices were issued.
“Between August 21 to 25, we were in Harare, where 18 businesses were issued compliance letters and 10 were taken to court.
“In Manicaland, 60 business operators have been arrested for consumer protection breaches.
“Our blitz for the businesses is continuing countrywide,” he said.
The enforcing of compliance with the law, and the implementation of several monetary and fiscal measures have played a pivotal role in the prevailing price stability in the economy in recent months.
Dr Nkosi said prices of goods and services have generally been stable post-election.
Latest figures from the Zimbabwe National Statistics Agency (ZimStat) show a marginal price increase from August to September.
Added Dr Nkosi:
“Of course we are not happy with the recent upward trend as this erodes consumer purchasing power, but the prices are relatively stable.
“This is a sign that the measures adopted by the monetary authorities are bearing fruit.
“We hope the trend will continue for the foreseeable future.”
Economist Mr Joseph Mverecha said:
“The post-election price stability is testament to Government policies implemented in May and June, as part of initiatives to converge the official and parallel market rates.
“The subsequent collapse in the parallel market premium is what has underpinned the price stability going forward.
“It is important to ensure that the parallel market drift does not recur, as happened in the past.”
Consumer Council of Zimbabwe (CCZ) chief executive officer Mrs Rosemary Mpofu said prevailing prices should be maintained going into the holiday season.
“Current market stability post-election period is a welcome development that should be maintained, leading to Christmas shopping, bringing relief to consumers who earn incomes below the CCZ family of six basket, and anticipating the 13th cheque as we draw close to year-end,” she said.
“Previously, consumers were hard-pressed by errant behaviour by some retailers that were practicing unethical conduct by speculatively forward-pricing goods and services in a bid to cash in on consumers.
“Due to robust policy measures put in place by monetary authorities, the market has seen positive gains that should be commended.”
Mrs Mpofu said competition in the market has contributed to current price stability, as consumers have a wide selection to choose from.
Big retailers are having to contend with significant competition from tuck shops and vendors.
The CCZ boss however said it is not ideal that the informal sector is not properly regulated.
“They do not meet prescribed operating standards, and do not pay statutory obligations as required by law,” said Mrs Mpofu.
She added:
“As CCZ, we continue urging consumers to get full value for money when making purchases, to avoid impulse buying, and to avoid sub-standard products that have flooded the market, especially in the informal sector.
“We urge continuous dialogue involving all players in the food supply chain, from policymakers to consumers, taking note of any concerns from these players that could affect the present stability.”