adminthe United Nations Food and Agriculture Organisation global food prices rose last month to near their record highs due to a sharp increase in sugar prices.
The FAO food price index, which covers prices of a basket of commodities, rose 1 percent to 234 points last month, up 39 percent compared with the same time last year and just below the record 238 points hit in February.
The main driver of the increase was a rise in the FAO’s sugar index, which increased by 14 percent to 359 points.
This increase in global food prices could have an adverse effect on local food pricing trends, which have maintained relative stability to date.
According to the Consumer Council of Zimbabwe, the urban low-income earner consumer basket for the month of June declined from US$504,03 in the previous month to US$502,04.
At the same time, the food basket has decreased from US$146,26 in May to US$145,23 in June reflecting a 0,01 percent decrease.
However, the threat to the local food-pricing matrix is further impelled by the fact that Zimbabwe is moving out of its summer harvesting season, in which a positive output of the maize crop typically corresponds to a decline in the general food basket.
Additionally, the sustained strengthening of the South African rand against the United States dollar could worsen price trends, particularly for foods such as maize, chicken, sugar, and cooking oil which the country imports from South Africa.
These developments are likely to exert additional pressure on the purchasing power of poor households in the country that are dependent upon the market for their food needs.
Increases in world food and oil prices are of concern given their characteristically direct impact on the food availability and pricing situation in Zimbabwe, especially from the hyper-inflation era.
Meanwhile, the CCZ has urged the Government to finalise the consumer rights law, which is expected to bring Zimbabwe in line with other countries in the Southern Africa Development Community region with respect to consumer protection.
Online Reporter