Cabinet will on Tuesday (today) discuss the issue of rampant and unrestrained price increases by businesses which are driving inflation.
This was revealed by the Deputy Minister of Media, Information and Broadcasting Services, Energy Mutodi. In an interview with Newsday on Sunday over the last round of price hikes by retailers, Deputy Minister Mutodi said:
Cabinet will discuss the issue of wanton price increases this Tuesday and a solution will be found. Certainly, we cannot have a market where speculators hike prices unnecessarily. We want some discipline in the retail sector.
However, in the meantime, we are saying no to parallel market exchange rate-driven inflation. Those bent on increasing prices based on the parallel market rates are economic saboteurs.
We do not have a budget deficit as we speak. Now we have a problem with the RTGS$ and US dollar supply ratio and we have noticed that once the US dollar supply subsidies on the market, speculators increase the exchange rate by offering more RTGS dollars for one US dollar.
Our people prefer US dollars even for domestic transactions and for locally-made goods.
This is what we will discuss and see if we can come up with measures to curtail the increasing pressure on foreign currency and the business of escalating prices based on speculative US/RTGS dollar exchange rate movements.