A two-week survey by The Zimbabwean has revealed that most retail outlets across the country have increased the prices of both locally-manufactured and imported basic commodities.
The rate of food price inflation is making life increasingly difficult for the millions of families already struggling to make ends meet under the weight of rising rentals, energy costs, taxes, interest rates and school fees.
Some experts suggest that retail prices are rising even faster than wholesale ones, despite the issues of supply and demand in the equation.
The average price of two litres of cooking oil rose from $3,75 in January to $4,30 last week. Blue bar washing soap rose from $1 to $1,40 during the same period, while one kg of economy beef rose to $5 from $3,50.
A 10 kg bag of mealie meal rose to $6,90 from $5.10. Mazowe orange juice now costs $3,10, up from $2,70.
Economists said the rise in the price of basic commodities in May was due to the firming of the South African rand against the $ dollar. Analysts also said the mentality of profiteering still existed among most retailers.
The appreciation of the South African rand to levels of around R6,8:$1 in recent months from previous levels of around R10:$1 would translate to an increase of dollar prices of goods and services imported in rands from South Africa.
Most of the consumer groceries being imported from South Africa have therefore seen an increase in retail prices.
Price fluctuations from exchange rate volatility are unavoidable for an importer in our position and stability will eventually be achieved when local production improves, said retailer who declined to be named.
The cost of living as measured by the Consumer Council of Zimbabwes for a low-income urban family of six declined to $501,79 in April from $504,38 in March reflecting a relative stabilisation in the prices of goods.
According to figures from the CCZ, the food basket for the month of April decreased from $146,21 in the previous month to $144,02, indicating a 0,02 percent decrease.
During the same period, the food and detergents basket decreased from $160,38 to $157,79, reflecting a similar 0,02 percent decrease.
CCZ executive director Rose Siyachitema attributed the decline to some factors that prevailed during the month – notably increased competition in the retail sector and a weakening rand.
CCZ has observed a slight decrease in prices for most products in the food basket. We encourage supermarkets to continue with this trend, pushing products at low prices. The rand has stayed somewhat weaker to the US dollar, she said.
The average rand/ dollar exchange rate for the month of April was relatively stable.
An analyst with a local commercial bank said: Reducing imports could make a difference since transport costs are high. With parity pricing they (local producers) can compete on quality.
Economist John Robertson said some of the more recent price rises were not justified, adding that some supermarkets and manufactures were profiteering as figures show that food prices have gone up far faster than can be explained.
Profiteering happens, there are cases where people make inappropriate margins along distribution system, he said
The priority for supermarkets is to get the appropriate stock on and off their shelves as fast as possible and increasing prices is not part of the game.
Economists said retail outlets needed to explain to consumers why prices of goods had gone up when major inflation drivers had been stable for a long time.
Commodity June November January, May
Mealie meal
10kg (pearlenta) $7,10 $6,30 $6,60 $6,66
Cooking oil 2litres $2,75 $2,75 $3,10 $4,30
White Sugar 2kg $2,30 $2,50 $1,90 $1,90
Rice 2kg (Mahatma $2,35 $2,50 $2,50 $2,85
Floor 2kg (Gloria) $1,85 $1,85 $2,20 $1,99
2 litres (Mazoe) $2,75 $3,00 $2,90 $2,75
1 kg beef (economy) $3,50, $3,90 $4,50 $5,00
100ml Colgate $99c $99c $99c $1,30
100 bags (Quick brew) $1,50 $1,80 $2,00 $2,20
Celeste tissues x4 $1,00 $1,20 $1,20 $1,55
Pro brands salt 1kg $30c $0,30c $0,30 $0,35c
Blue bar washing soap $1,00 $1,05 $1,20 $1,40
Geisha soap $0,60c $0,60 $0,65 $0,69
Surf 500g $1,25 $1,30 $1,50 $1,80
Milk 500ml $1,00 $1,00 $1,00 $0,90c
1 kg tomatoes $1,00 $1,00 $1,20 $1,00
Stork magazine 500g $1,90 $1,85 $1,90 $1,97
Post published in: Economy