adminThe consumer watchdog said the figures reflect a 0,83 percent decrease in the cost of living.
“The food basket has decreased from $148,88 in June to $143,94 in July reflecting a 3,32 percentage decrease. The food and detergents basket increased from $162,13 in June 2012 to $157,47 in July 2012 by $4,66 reflecting a 2,87 percentage decrease,” said CCZ executive director, Mr Rosemary Siyachitema in a statement.
A few increases were recorded for laundry bars which went up 13 cents from $1,42 to $1,55, onions by 9 cents from 90 cents to 99 cents and flour by 5 cents from $1,80 to $1,85.
Basics which went down included beef from $4,20 to $3,92, mealie-meal from $9,38 to $9,10, white sugar from $2,25 to $2,15, tea leaves from $2,35 to $2,15, rice from $1,85 to $1,80, salt from 23 cents to 20 cents, tomatoes from 70 cents to 55 cents as well as cabbages from 59 cents to 55 cents per head and bath soap from 85 cents to 79 cents.
Ms Siyachitema said prices of margarine, fresh milk, cooking oil, bread and washing powder remained unchanged.
“The CCZ is pleased with the fact that no increases were recorded at all for some of the commodities while prices for some actually fell. As the CCZ, we believe this is as it should be in a normal economy.
“Relentless and unwarranted increases in the prices of goods and services remain of great concern to consumers in the absence of any logical explanations by retailers — a situation which has forced many to ask questions about what is the real value of the US dollar locally and the reasons behind such phenomenon,” she said.
An economic analyst, Mr Witness Chinyama, said the drop in the cost of living in July was too minimal to bring about meaningful changes in consumers’ living standard.
He said the drop also signifies stability in the cost of living. “The drop in cost of living will have small implications on the standard of living for the workers. The drop is mimicking the inflation trend and also shows stability in the cost of living,” said Mr Chinyama.
He said the stability in prices of goods means that companies could now move away from salary increases based on the Poverty Datum Line.
“Companies should now keep salaries stable. The issue of using inflation to increase salaries becomes redundant as a result stability in prices; any salary increases should be based on productivity,” he said. Mr Chinyama said Zimbabwe was showing economic stagnation due to liquidity challenges also keeping inflation levels stagnant.
“For the past 10 years, local companies have not been investing in technology to achieve competitive edge in face of foreign industries. It is critical for Government to set economic growth promotion targets so that local industries can improve their production levels,” he said.
Online Reporter