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| Press Statements |
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| May Basket Shoots up by 65.7% |
| 11th June 2007 |
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The cost of living as depicted by the Consumer Council of Zimbabwe’s low-income urban earner monthly budget for a family of six has risen from $3 349 051.97 in April 2007 to $5 549 252.33 in May 2007, reflecting a 65.7% increase. In terms of US Dollars the Family Basket shifted from US$13 396.21 in April 2007 to US$22,197.07. The percentage differential between the Retail Prices Family Basket and the Manufacturing Prices Basket is 13.0% reflecting that on average most prices of basic commodities shifted by at least 13.% in the production, and distribution chain as products moved from the manufacturers, to wholesalers and finally retailers.
Notable increases on a month on month basis were recorded on Water and Electricity which rose by 251.1%, Clothing and Footwear by 241.1%, Transport by 150%, Tea Leaves by 121.2%, Fresh Milk by 92.2%, Meat (Beef) by 84.4%, and Bread by 76.5%. The major mover for the month of May was Water and Electricity, owing to upward tariff changes. There have been significant increases in the prices of basic commodities in the period between April and May2007, prices of most basic commodities rose by at least 50%.
The family basket based on manufacturer prices totalled $4 909 550.50, is 13.0% cheaper than the retail basket which is pegged at $5 549 252.33, whilst the wholesale basket of $4 918 312.08 is 12.8% cheaper. This therefore proves how cheaper it is for consumers to purchase products directly from manufacturers whenever they have a chance. CCZ takes this opportunity to invite consumers who have already organised groups and those who can organise themselves into groups to join CCZ and gain access to purchasing products directly from manufacturers.
Price increases continue to bring about suffering on the majority of consumers. CCZ commends the setting up of the National Incomes and Pricing Commission (NIPC) (which CCZ is a board member) and pins its hopes to addressing the disparities in the economy on prices and incomes on the Commission. Of notable interest is also the signing of the Social Contract and protocols under the Tripartite Negotiation Forum (TNF). All these measures will go along way in bringing stability into the economy. Through the various bodies inflationary tendencies in terms of pricing can be curbed and resultantly reducing the inflation significantly. There is however need to expeditiously implement measures agreed upon so that the intended beneficiaries, consumers, government and business, can realise the gains of having the NIPC, Social Contract and TNF working in full force.
Consumers need to shop around for the cheapest product, in order to get value for money. Consumers have a role to play in ensuring that they get a fairdeal on the marketplace.
CCZ notes with concern the continued inavailability of some basic commodities such as Cooking and Flour on the formal market. In all the five regions CCZ conducts its surveys in, Roller Meal is most expensive in Gweru and the Midlands area where 20kg Roller Meal is being sold for at least $210 000.00, as compared to other regions where the same quantity of the product is being sold for less than $90 000.00. CCZ notes significant improvements in the supply of Sugar, which started surfacing on the formal market in May although in some instances the product is still in short supply or quickly finished as consumers are panic buying with fears of the product’s supply going low
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