Cost of living increases marginally

to US$504,60 last month from US$505,16 in July.
The increase, although anticipated in view of the reintroduction of duty on imported basic commodities, was perhaps lower than expected.

According to the Consumer Council of Zimbabwe, the food basket increased from US$146,27 in July to US$146,71 last month, while the food and detergents basket increased from US$160,16 to US$161,06 showing that the major price increased driver during the period were detergents.
There has generally been a stability in terms of other macro-economic fundamentals, for instance, the CCZ notes that the South African rand is presently weaker than the United States dollar, while the price of fuel – both petrol and diesel – remained stable at between US$1,30 and US$1,43.

CCZ executive director Ms Rosemary Siyachitema said her organisation was still anticipating increases in the family basket in the outlook period.
This is as a consequence of inflationary pressures that are being fuelled by the reinstatement of import duty on some basic commodities, and the recent electricity tariff hike by Zesa.
The cost of the basket for transport, rent, water and electricity, health, education, clothing and footwear remained stable at US$344, although this basket may experience the largest upturn in the upcoming months due to the electricity tariff increase.

The CCZ has, however, commended the Government for reducing water and rates charges to “levels that are accessible to consumers” and has urged to do likewise in respect of electricity charges.
Observers have said the move by Zesa has the potential to set a negative precedence of unjustified utility tariff increases, especially as most utility service providers are facing serious liquidity challenges.

Confederation of Zimbabwe Industries president Mr Joseph Kanyekanye has also warned of the negative impact the move will have on inflation trends.
“If implemented, the inflationary
ramifications of this purported increase constitute a disaster in terms of competitiveness of local businesses and can also herald a spat of price increases throughout the country,” he said.