Forex crisis at root of price hikes

from the fundamentals.
A government source said the Commission was tasked with providing a preliminary report after assessing the situation on the ground since being appointed a fortnight ago and has urged government to first of all address the issue of foreign currency shortages, it cites as the major cause for the high prices of basic commodities.
“The commission has reported back after a preliminary assessment and it emphasizes that the problems lies mostly with foreign currency shortages as well as the resultant scarcity of raw materials on the local market,” the source said.
“Minister of Industry, Obert Mpofu said that the commission will be compiling a more comprehensive report and forward recommendations to government. “The commission still has to do more even if there are preliminary assessments. A comprehensive assessment of the situation should be forwarded to government,” he said.
Meanwhile, unbridled price increases continued again during the past week, to fall in the face of both the commission and the recently-signed part of the social contract dealing with prices and incomes. Prices of all basic commodities increased with for example, a standard loaf of bread rising in cost from about Z$14 000 to $24 000 in supermarkets this week.