Prices of commodities have been rapidly going up in Zimbabwe with stakeholders engaging in blameshifting thereby confusing observers who would want to know the real cause.
Manufacturers and retailers blamed each other for the price hikes when they recently met with President Emmerson Mnangagwa over price hikes.
Zimbabwe Independent is of the view that the blame-game was indicative of the absence of requisite economic structures.
The publication further observes that inflation is soaring because the local industry is in a parlous state, cannot export due to antiquated equipment, high production costs and erratic power supplies, and hence their pricing model has been designed to ensure that they do not trade out of business. The publication further claims:
Unlike in the past, Zimbabwe’s inflation is not being driven by excessive money supply (notes in circulation) but an unstable currency, government’s fiscal indiscipline and a general lack of confidence.
Zimbabwe Independent projects a scenario whereby inflation will continue to rise due to low exports and high production costs and also due to prices race to catch foreign exchange movements and fuel prices.
Meanwhile, Finance Minister, Professor Mthuli Ncube projects that the inflation will this stabilise before “falling rapidly in 2020”.
More: Zimbabwe Independent