Weakening rand pushes prices down

via Weakening rand pushes prices down August 6, 2014

THE National Incomes and Pricing Commission (NIPC) says prices of some products have continued on a downward trend due to the weakening of the rand and decline in aggregate demand.

In its price monitoring report for the end of July, NIPC said during the period January to July prices of 500ml Ingrams Camphor Cream and 100ml Colgate toothpaste decreased by 22, 26% and 25% respectively.

The commission said during the period, prices for peanut butter, milk, brown sugar and washing powder also went down.

“The period from January to July has seen some deflationary trends in the economy,” the report showed.

“Weakening of the rand makes imports cheaper since Zimbabwe imports the bulk of its finished products from South Africa.

“In addition, the decline in price is a result of price self-correction as people charged high prices due to the Zimbabwe dollar mentality stemming from the hyperinflationary period.”

The decline in prices for some products comes as the Consumer Council of Zimbabwe (CCZ) said the consumer basket for a family of six people rose by 17 cents to $589,14 for the month of July due to increases in the price of meat and tea leaves.

During the period under review, CCZ said prices for a kg of beef increased to $4,30 up by 31 cents from $3,99.

Tea leaves increased by 77 cents to $1,87.

“The food basket increased by $1,54 or 7,77% from $144,57 to $146,11 due to an increase in meat and tea leaves,” the consumer watchdog said.

CCZ said the prices of detergents decreased by $1,37 to $9,03 due to a fall in the price of washing powder and bath soap.

During the period under review the prices of tomatoes went down by 40 cents to 80 cents, onions 40 cents to $1,05, washing powder 89 cents to $1,20, bath soap was down by 11 cents to 59 cents, sugar 2kg was 9 cents down to $1,70, rice 2kg 5 cents to $1,59, flour 2kg 4 cents $1,85, but salt increased by 1 cent to 19 cents.

In July non-movers included margarine, mealie-meal, fresh milk, cooking oil, bread, cabbage and laundry bars.