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The introduction of bond coins and fuel price cuts have resulted in basic commodity prices decreasing by one percent, though increasing competition among retailers and an anticipated price review model are expected to spur further reductions.
Since the adoption of multiple currencies in 2009, retailers have been rounding prices up citing lack of small change.
This pushed commodity prices higher than they should have been, and significantly above those obtaining elsewhere in the region.
Information from the Consumer Council of Zimbabwe (CCZ) shows that bond coins are compelling retailers to adjust prices as change is now available.
The coins are available in denominations of one cent, 5c, 10c and 25c.
Further, the drop in the cost of fuel — though at rates lower than those experienced elsewhere across the world as occasioned by falling oil prices — has had a small knock-on effect locally.
Petrol prices were recently reduced from between $1,49 and $1,51 per litre to between $1,42 and $1,44. diesel has fallen from between $1,34 and $1,38 to around $1,30.
This has had a marginal impact on commodity prices because a 10c excise duty increase raised counterbalanced the fall in fuel costs.
CCZ executive director Ms Rosemary Siyachitema said the consumer basket for an urban family of six was at the end of January placed at $584, down from $590 the previous month.
The food basket alone was pegged at $140,50 down from $146,09.
“Although we recorded a marginal decrease of the consumer basket in January, we still expect the figure to increase from $5 to between $10 to $20 because our prices in Zimbabwe have always been on the higher end.
“If international prices of fuel go down, we also expect local retailers to slash prices; they (prices) shouldn’t be on the high end if other countries are reducing.”
Mr Denford Mutashu — the general manager of retailer Food World — said the prices of their basic commodities dropped in January, though demand for goods remained relatively low.
“There has been a slight reduction of prices of basic commodities since the beginning of the year, but, generally, business is low due to constrained demand which means most retailers are facing losses.
Online Reporter