Chinamasa says he is opposed to price controls

Minister of Finance and Economic Development Patrick Chinamasa recently told Parliament that he is opposed to the introduction of price controls. This comes after some retailers hiked the price of basic commodities towards the end of September following reports that the bond note was losing value against the United States dollar. Chinamasa said that he would rather let market forces determine the prices.

Said Chinamasa:

What I want to say Mr. Speaker Sir, this happened in a discussion in Cabinet yesterday, I told Cabinet that I am opposed to the reintroduction of price controls; they will worsen and exacerbate the situation. We must handle it in a market-friendly way and I think it can be done.

The issues on what to do on prices which were hiked, is a matter that is going to be the responsibility of the Ministry of Industry and Commerce. They have started undertaking a survey, to determine two things: (firstly), is there a shortage of any of the essential commodities in the market? We do not think there is, but that should be highlighted. Secondly, to determine the price increases and the justification for increasing those prices. Only when we have scientific data can we justify taking any measures.

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