The Sunday News
Noble Ncube
THE cost of living for a family of six increased to $554,68 by end of December from $551,19 in November last year pushed by meat prices that went up by an average $1,01.
The figures revealed an increase of $3,49 or 0,63 percent as measured by the Consumer Council of Zimbabwe (CCZ) in the country’s monthly price review. According to the report by the consumer watch dog, the price increase of various goods and products was caused by the general view that during the festive season prices tend to rise since retailers have the perception of consumers having more income at their disposal.
Despite the increase, the month of December recorded the second lowest cost of living in 2015. CCZ Matabeleland regional manager Mr Comfort Muchekeza said as a result of cattle diseases and drought affecting most farmers who supply meat to various butcheries around the country, there was high demand than supply during the last two months of last year. He said the diseases resulted in restriction of movement of livestock.
“There is general shortage of beef as drought and diseases hound farmers. As a result some farmers quarantine their cattle and they cannot move cattle from one place to another,” he said.
Commenting on the overall family basket Mr Muchekeza said decreasing disposable income was also forcing retailers to review their prices. The low income urban earner monthly basket for a family of six recorded its highest figure in January last year at $584,91 revealing a margin of $30,23 when it recorded $554,68 in December the same year.
“In terms of the comparison of the food basket throughout 2015, the weakened South African rand helped in easing prices. South Africa is our biggest trading partner and with us using the US dollar, it is always an advantage. The fall of the rand in months leading to December last year triggered the decrease of the total cost of family basket.
“However, in general there is no money in the market. This is forcing retailers to sell at minimum profit margins so as not to put stress on consumers. Retailers pass the benefits to consumers. We should have more local products charged at affordable prices so as to beat competition from foreign products,” said Muchekeza.
The consumer watchdog regional manager said local products were still facing competition because of smuggling of various products. He said most of the consumers in the country were more price based than being attracted to quality. CCZ encouraged consumers to shop conscientiously and to always buy certified products. He said where products are not certified, consumers have a right to information by carefully examining if the products they are purchasing are well labelled, packaged and provided with vital information such as manufacturing and expiry dates and ingredients used in the make-up of the products.
According to the report, the food basket increased by $3,63 or 3,31 percent from $109,62 as of end November 2015 to $113,25 by end December 2015.
CCZ said products that recorded an increase in price included brown sugar which went up by 11 cents from $1,64 to $1,75, rice by four cents from $1,50 to $1,54, cabbage by 21 cents from 39 cents to 60 cents, beef (economy) by $1,01 from $2,89 to $3,90 and bath soap by seven cents from 30 cents to 37 cents. The prices of roller meal, onions, tea leaves and laundry bar remained the same.
“Decreases in prices were recorded on margarine by 37 cents from 99 cents to 62 cents, cooking oil by five cents from $1,30 to $1,25, flour by 61 cents from $1,60 to 99 cents, fresh milk by six cents from 65 cents to 59 cents, bread by five cents from 65 cents to 60 cents, salt by two cents from 20 cents to 18 cents, tomatoes by 20 cents from 75 cents to 55 cents and washing powder by 14 cents from 99 cents to 85 cents,’’ said the consumer body.
The survey is conducted twice during the first and the last weeks of every month. The total cost of the food basket and the price of each commodity are arrived at by averaging prices gathered from retail outlets throughout the country. The basket is a fairly accurate depiction of the cost of living in urban Zimbabwe.
