Shops Hike Prices Ahead Of Festive Season

The prices of basic grocery items have increased sharply ahead of the festive season, potentially making the holidays miserable for the majority of Zimbabweans, a Business Times report claims.

Rosemary Mpofu, executive director of the Consumer Council of Zimbabwe (CCZ), attributed the price hikes to unfavourable government policies, increased demand for goods and the depreciating value of the Zimbabwean dollar against other currencies. She said:

As measured by the CCZ low-income urban earner monthly basket for a family of six, the cost of living measured in the local currency increased by 8.56% from ZWL$2 958 460.70.

Given the proposed policy measures in the recently pronounced budget statement, in particular, the increase in the corporate income tax, the restriction of procurement of goods from manufacturers and the imposition of levy on beverages, the cost of living is projected to continue to increase.

The demand for most basic products increases during the festive season and based on the previous trends, suppliers often take advantage and raise their prices during the period.

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Also, it was noted that some suppliers also introduce false promotions during the festive season yet their prices would have been inflated just before the festive season.

The local currency has also been depreciating at the formal wholesale and also on the parallel market.

A survey conducted this week by Business Times showed that: the price of a 10-kg bag of mealie meal has increased to ZWL$57 427.50 from ZWL$44 175.00 at the end of November, while the price of a 2-litre bottle of cooking oil has gone up to ZWL$26 505.00 from ZWL$25 935.00.

In major retail chains, a 2 kg packet of rice is now selling at ZWL$18 553.50 from ZWL$18154.00.

More: Pindula News