Maravi

(HERALD) Cost of living declines 20pc

Cost of living declines 20pc
By Joseph Madzimure

THE cost of living for a family of six for the month of January declined by 20 percent to US$381,23 from December’s figure of US$459,59. There was a significant reduction in the cost of foodstuffs from US$219,79 in the month of December 2008 to US$153,63 in January this year.

The fall is attributed to competition on the market, zero duty on basic foodstuffs and allowing people to import for themselves from neighbouring countries.

The purchasing power of the United States dollar in South Africa is significantly higher than in Zimbabwe.

It is important to note that now there is more competition in the market as this will assist in reducing prices of goods.

According to a survey carried out by the Consumer Council of Zimbabwe, a kilogramme of margarine was selling at US$2,80 in Zimbabwe while the same product was going for US$0,70 in South Africa. A two-litre bottle of Mazoe Orange Crush was selling at US$2,80 locally compared to US$0,95 in South Africa.

A kilogramme of economy beef was priced at US$6,50 in the country compared to US$1,20 across the border, while the respective costs of 2kg of flour were US$2,15 and US$1,88.

CCZ executive director Ms Rosemary Siyachitema said goods sold in Zimbabwe were pegged much higher in hard currency as compared to the source market.

She said prices of most basic commodities in forex shops were still beyond the reach of the majority of consumers with most retail outlets now licenced Foliwars shops.

Most of the basics were now readily available in forex shops where an increasing number of the products were bought directly from local manufacturers with the bulk imported from neighbouring countries like South Africa.

In spite of this, she said, most salaries were still pegged in local currency, which most retailers and even street vendors had stopped accepting.

Transport costs have also become a major cause for concern as many people cannot afford to travel to and from work.

Most commuter operators are charging fares in hard currency, a situation that has brought challenges in finding small change, making consumers pay more than they should.

Labels: INFLATION, NEOCOLONIALISM, SANCTIONS

posted by MrK @ 8:29 PM