Cost of living rises

consumer basket increased to US$505,16 in August from US$504,60 the previous month, then to US$527,52 in September.
According to the Consumer Council of Zimbabwe’s low-income urban earner monthly basket for a family of six, the cost of living went up 0,03 percent to US$540,80.

CCZ said the overall increase in the October 2011 figure was a result of the speculative attitude by profiteering retailers towards Christmas and payment of bonuses.
Electricity rates increased from US$20 to US$45 per month, which is also expected to have a negative impact on local manufacturers’ pricing matrix.

The manufacturers tend to pass down the expense to consumers.
The food basket increased from US$145, 09 in September to US$158,18 in October, reflecting a 0,09 percent increase, while the food and detergent basket recorded a 0,08 increase from US$158,52 to US$171,80.

CCZ said that in the month of October prices for most basic commodities went up.
“Mealie meal has increased by 20c, white sugar increased by 7c, tea leaves increased by 15c, cooking oil rose by 6c and flour rose by 10c,” said CCZ.

“The price of rice increased by 20c, salt by 5c, onions by 20c, 1kg beef by 1,25c whilst the price of a washing soap bar increased by 34c.”
The consumer watchdog is anticipating a downward movement of prices of basic commodities, especially with the expectations that the South African rand will weaken against the US dollar.

When the US dollar strengthens against the rand retailers are quick to increase prices.