Chronicle Editor
Sikhulekelani Moyo, Business Chronicle
THE Consumer Council of Zimbabwe (CCZ) has commended the relative stability in the pricing of basic commodities and services in the market and has urged the Government and the private sector to work together to sustain the momentum for the benefit of the economy.
Unlike the past months, where exchange rate volatility and market indiscipline drove wild price increases on a weekly basis, the consumer watchdog said Government measures were gradually restoring macro-economic stability.
CCZ Matabeleland regional manager, Mr Comfort Muchekeza, said Government controls on money supply and the tightening of screws on illicit money dealers have helped contain inflationary pressures in a big way.
The momentum has also been enhanced by the continued downward review of fuel price, which is a major production factor.
“We commend the relative stability on prices and this stability can be sustained because the cause of the instability has been linked to the supply of the local currency in the market. In the past the market used to be flooded with RTGS dollar,” he told Business Chronicle in an interview.
“If the monetary authorities can maintain the prevailing stance on money supply, we can safely say the price stability of goods and services is sustainable.”
Mr Muchekeza said in the past the problem of excess liquidity in the market was a breeding ground for illegal money changers and weakening of the value for the local dollar as prices kept soaring.
“Now it’s difficult to get the local currency and I have seen many consumers trying to buy the local currency but failing,” he said.
Mr Muchekeza said when there is a high demand for the local currency, that gives the local dollar value.
“The latest ZimStat report for August 2022 already shows that the country’s month on month inflation has sharply dropped to 12,4 from 25,6 percent in July in response to corrective macro-economic policy measures being implemented by the Government, which have started pushing the cost of living downwards.
In May this year, Government came up with macro-economic policy measures, which were meant to boost confidence and reduce inflation.
Amongst the measures was the introduction of the willing buyer willing seller system for a market determined exchange rate, continuation of partial dollarisation and suspension of lending by banks, which was later lifted.
The Government later introduced gold coins, which Mr Muchekeza said have played an immense role in sanitising the market.
“The introduction of gold coins has also contributed to this current economic stability as people with excess money buy gold coins instead of supplying the black market,” said Mr Muchekeza.
In July 2022 cooking was priced between $3 400 to $4 200 depending on the brand but the price has now eased to around $3 100 depending on the brand.
Citing the positive market stability, the Zimbabwe National Chamber of Commerce (ZNCC) has also joined growing calls by consumers for businesses to reduce prices in line with the continued drop in fuel prices and easing of inflationary pressures. – @SikhulekelaniM1.
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