eBusiness Weekly
The Consumer Council of Zimbabwe (CCZ) has expressed concern over a tendency by some supermarkets of selling some products exclusively in foreign currency, disadvantaging ordinary consumers at a time the cost of living was shooting up.
CCZ corporate affairs director, Phillimon Chereni, said the move by the retailers placed ordinary consumers not earning US$ salaries at a big disadvantage.
“As measured by the council’s low income urban earner monthly basket of six, the cost of living measured in the local currency increased by 22.66 percent from $2 958 460.7 to $3 628 944.20,” said Chereni.
“Among the top shakers and movers in the basket were cabbage, salt, tomatoes, onions and cooking oil which rose by 97.7 percent, 63.7 percent, 56.4 percent, 50.6 percent and 44.8 percent respectively. This is partly attributed to the high demand of these products during the festive season. In contrast, water and rates, washing powder, transport and education recorded the least shakers, registering 8.5 percent, 5.3 percent, 4.6 percent and 1.3 percent respectively.”
Chereni said commodity prices in the consumer increased sharply due to the steep depreciation of the local currency after the relaxation of the managed exchange rate by the central bank last month.
Most supermarkets now display USD prices as they are more stable compared to the local currency, and strictly insist on greenback payment for selected commodities.
“In USD terms, the basket decreased by 10.96 percent from US495.04 to US$440.79 during the same period,” Chereni said.
“This paradox is attributed to the dual pricing system which CCZ noted in the market. Most products which are paid for in USD currency are attracting a discount, hence the fall in the prices for the basket when using USD displayed prices. In line with this, it will be noted that all prices of all products in USD currency moved to the negative in price changes with the exception of only six products, namely cabbage, salt, tomatoes, onions, cooking oil and laundry bar.” – New Ziana
