Source: Consumer goods prices continue to soar – DailyNews Live
Farayi Machamire 6 December 2017
HARARE – Zimbabwe consumer prices are surging as basics mark their fastest
rise this year, with experts blaming the rise on profiteering by
retailers.
The price of beef soared month-on-month to $7,50 per kg this month from an
average of $4,50 in October 2016.
The price of table eggs surged from $5 to $6,40 this month, pushing up
the overall price gains of food costs.
Core inflation was 2,24 percent in October, compared to the 0,78 percent
y-o-y reading in the previous month.
The prices of toothpaste, soaps and hair products have also significantly
increased.
According to the latest consumer price index (CPI) data, inflation spiked
the highest this year in October. Inflation levels in many salient
sub-indices remained stagnant during mid-2017, compelling the government
to introduce an additional $300m worth of bond notes under a stand-by
liquidity support facility in September – with the aim of stimulating
forex liquidity.
In addition, the Reserve Bank of Zimbabwe (RBZ) secured an $600m nostro
stabilisation facility in September in a move to address the forex
shortage situation amid a growing backlog of foreign payments.
Confederation of Zimbabwe Retailers (CZR) president, Denford Mutashu said:
“While there is still a shortage of foreign currency, we also notice that
there is a bit of indiscipline which is still deep rooted in businesses.”
“Labour has not gone up but production cost is going up. Our call as we
approach the festive season is that players should desist from price
increases based on profiteering. We hope that even the unregistered
business don’t continue to take advantage of the consumer.
“Yesterday when we were doing a survey, we discovered that some
unregistered as well as registered businesses are refusing to accept
mobile money, some claim not to have swipe facilities and others are
putting a maximum of $2 bond coins and the rest has to be of higher
denominations. This is happening even at the Chinese shops and Indian
shops.”
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