Monthly Family Basket Rises To ZWL$3.6 Million

The cost of the food basket for a family of six increased last month to ZWL$3.6 million from ZWL$2.9 per month, the Consumer Council of Zimbabwe (CCZ) has revealed.

In a statement issued yesterday, CCZ director of corporate affairs Philimon Chereni said the monthly basket for a family of six had, however, gone down in US dollar terms to US$440.79 from US$495.04. Part of the statement read:

As measured by the Consumer Council of Zimbabwe’s low-income urban earner monthly basket for a family of six, the cost of living measured in the local currency increased by 22.66% from ZWL$2 958 460.70 to ZWL$3 628 944.20.

Among the top shakers and movers in the basket were cabbage, salt, tomatoes, onions and cooking oil which rose by 97.7%, 63.7%, 56.4%, 50.6% and 44.8% respectively.

This is partly attributed to the high demand for these products during the festive season.

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In contrast, water and rates, washing powder transport and education recorded the least shakers, registering 8.5%, 5.3%, 4.6%, and 1.3%, respectively.

Chereni said the depreciation of the Zimbabwe dollar is attributable to the relaxation of the foreign auction market exchange rate by the central bank in December 2023. He added:

It should also be noted that most supermarkets have resorted to displaying their prices in US$ form as they are most stable compared to the local currency prices which frequently have to be changed to match the lateral market rate.

In US$ terms, the basket decreased by 10,96 % from US$495,04 to US$440,79 during the same period.

This paradox is attributed to the dual pricing system which CCZ noted in the market.

CCZ has noted with concern that some products in supermarkets are exclusively in US$ which disadvantages the ordinary consumer who may not be earning the US$ currency.

In October last year, the Government enacted Statutory Instrument 218 of 2023 which extended the duration of the multicurrency regime from 2025 to 2030.

The gap between the official and parallel exchange rates continues to widen.

More: Pindula News