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Shops Hike Prices Ahead Of Christmas

Shops Hike Prices Ahead Of Christmas

A wave of price increases of groceries a few days before Christmas has dampened the festive mood, with members of the public lamenting the reduction of their purchasing power.

Over the past week, several shops including retail chains and major supermarkets have hiked the prices of mealie-meal, cooking oil, sugar, meat, rice, fish and potatoes among others.

Businesses claim the price increases were triggered by the depreciating Zimbabwe dollar against the United States dollar on the parallel market.

A snap survey by Chronicle of prices in shops within the Bulawayo Central Business District showed that a 2kg packet of chicken which used to sell for an average of $1 000 now sells for between $1 200 and $1 300.

A kilogramme of fresh kapenta (sardine) increased to an average of $500 for a kilogramme in most retail outlets.

The survey also showed that a two-litre Coke has increased to around $309 from $250 while a two-litre bottle of cooking oil has risen from $500 to $700.

One shopper, Primrose Hadebe, a teacher said they have not enjoyed their bonuses that were paid in foreign currency owing to the “price hike madness”. She said:

Prices of most commodities have gone up. We got paid our bonuses in forex but we have not enjoyed the cushioning because of the price hike madness we are witnessing.

In some cases, prices have more than doubled compared to last month.

The Government paid civil servants their bonuses in United States dollars in November to cushion them against rising inflation.

Another teacher, Marie Ncube from Mkoba 9 suburb in Gweru, implored the Government to intervene and stop the price hikes. She said:

I am a teacher and have just withdrawn my forex bonus but I can only buy very little because of the exorbitant prices in both local currency and forex.

Only two weeks ago the bread price was $150 but now it’s $160. This is just one of the many food items whose price has been increased.

Meanwhile, Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu attributed the prices increases to the weakening Zimbabwe dollar against the United States dollar. Said Mutashu:

The increases are directly related to the continued firming of the United States dollar against the local currency on the parallel market.

He urged consumers to avoid panic buying and instead take their time to compare prices so that they get the best bargains.

Zimbabwe National Chamber of Commerce president Tinashe Manzungu told Chronicle that price increases will likely push up inflation and cut consumer spending.

Public Service, Labour and Social Welfare Minister Paul Mavima said there was a need to stabilise the exchange rate so that salaries are not eroded.

He noted that even if salaries are raised in Zimbabwe dollar terms, they will be eroded by exchange rate fluctuations.

The Consumer Council of Zimbabwe (CCZ) said the energy price increase had a ripple effect on prices as it directly feeds into rising food and transport costs.

More: Chronicle


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5 Comments

WILLIAM SONBOY CHINEMBIRI 5 months ago

THE SECOND ADMINISTRATION HAS FAILED TO REIGN IN UNSCRUPULOUS RETAIL CHAINS AND MAJOR SUPERMARKETS ON THEIR PRACTICES OF INCREASING PRICES AT EVERY CHRISTMAS TO BOOST THEIR CASH EARNINGS.

THEY ARE RUNNING ZIMBABWE AND ZIMBABWEANS EXPECT THEM TO PROTECT THEM FROM THESE MARAUDING MONEY SHARKS. IT IS THEIR PRACTICE YEAR IN AND YEAR OUT.

IF THE SECOND ADMINISTRATION HAD PEOPLE AT HEART, THEY WOULD HAVE STUDIED THIS PRACTICE LONG BACK AND PUT IN PLACE CHECKS AND BALANCES TO THWART THEM.

OUR BUSINESSES INCREASE PRICES EVERY TIME GOVERNMENT AWARDS SALARY INCREMENT TO ITS WORKERS AND DURING BONUSES. I DO NOT THINK THAT BUSINESS PRINCIPLES OPERATE THAT WAY. THEY SHOULD INCREASE PRICES WHEN THEY INCUR ADDITIONAL COSTS IN PRODUCTION AND THE SUPPLY OF SERVICES.

OUR BUSINESSES NO LONGER FOLLOW THE LAWS OF DEMAND AND SUPPLY. THEY NOW FOLLOW THE LAWS OF THE BLACK MARKET.

THE PRESIDENT HAS TRIED TO SIT DOWN WITH BUSINESSES AND ASK THEM NOT TO INCREASE PRICES UNNECESSARILY EVERY TIME. BUT AS SOON AS THEY LIVE THAT PLACE THEY INCREASE THEIR PRICES AS IF TO FIX THE PRESIDENT.

I AM A LAYMAN IN ECONOMICS, BUT I THINK THE FIRST ADMINISTRATION WAS RIGHT ON IMPOSING PRICE CONTROLS ON THESE SHARKS.

BECAUSE GOVERNMENT HAS FAILED TO CONTROL BUSINESSES, THEY SHOULD EITHER REVERT BACK TO US$ AS THE ONLY TRADING CURRENCY AND GET RID OF RTGS OR REINTRODUCE PRICE CONTROLS FOR SOMETIME AND LIFT THEM WHEN BUSINESSES LEARN TO OPERATE THEIR BUSINESSES WITHIN GOOD BUSINESS PRINCIPLES.

[[ PLEASE SAVE US FROM THESE MARAUDING MONEY SHARKS ]].

YOURS SINCERELY
CDE KUFA KWANGU ZVAROVA
[ THE BUSH LAWYER ]


Ini newe tine basa 5 months ago

Only In Zim prices actually increase towards the festive season, kumwe varikutodzikisa! Nyika ino igomba remarara


umaali 5 months ago

Ah mabonuszve ndoakonzeresa


Mr ndhlumbi 5 months ago

F word 2 price hiking juss bcoz it's Christmas


Kanda 5 months ago

It was obvious nekwava nerate yacho



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