Family Basket Jumps To $1 Million Per Month - CCZ
The Consumer Council of Zimbabwe (CCZ) says a low-income urban family of six now needs just over $1 million a month to survive, up from $611 275 in April.
CCZ director Rosemary Mpofu said the cost of living rose by 62% between April and May in Zimbabwe dollar terms.
However, during the same period, the prices of goods and services in United States dollars went down by 31.4 %. She said:
The Consumer Council of Zimbabwe low-income urban earner monthly basket for a family of six stands currently at $1 015 962,61.
This is a sharp increase because the basket has shot from the month of April, where it was $611 275.
When we look at the basket as we measure it, we find out that the low-income earner is mainly earning in the Zimbabwean dollar.
But the cost of living has really increased from the April figure to the May figure and it has constituted a percentage increase of 62.2%.
The new analysis that we use in US$ has decreased by 31.4% so prices have increased in Zimbabwe dollar terms and yet in US$ have decreased by 31.4%.
The astronomical rise in the cost of living follows a sharp fall in the value of the Zimbabwe dollar over the past few weeks.
Last month, the Zimbabwe dollar fell by nearly 60% on the official market.
On Tuesday this week, the local currency fell from US$1: ZWL$2 577 set by the central bank on 30 May 2023 to ZWL$3 673.
The latest statistics by the Zimbabwe National Statistics Agency (ZIMSTAT) indicate that the annual inflation rose by 11.3 percentage points from April to 86.5% in May.
However, Steve Hanke, a professor of Applied Economics at Johns Hopkins University, argues that Zimbabwe’s inflation is at 717%.
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