Stable prices cheer for festive season

PRICES of basic goods are expected to remain largely stable during the festive season on account of economic stabilisation measures rolled out by Government in recent months.

A price monitoring survey conducted by the Consumer Protection Commission (CPC) over the last month shows that prices of key basic commodities — among them mealie meal, cooking oil and bread — have remained stable.

CPC research and public affairs manager Mr Kudakwashe Mudereri told The Sunday Mail that tight fiscal and monetary policies have been effective.

“The price monitoring survey conducted shows that — as of October 27, 2023 — the prices of basic commodities have remained stable in the market,” he said.

“This stability is against the background of the continued implementation of tight, prudent and robust fiscal and monetary policies by both the Treasury and the central bank.

“The positive market trajectory is seen through the stable macroeconomic environment prevailing in the economy,” he said.

According to the CPC, the price of a 10kg bag of mealie meal has ranged between $36 000 and $53 900 over the past five weeks.

The US dollar price was constant and ranged between US$5,30 and US$7.

In addition, the price of a two-litre bottle of cooking oil was unchanged over that period and ranged between $21 704 and $23 000.

A standard loaf of bread varied between $6 400 and $7 200, while the US dollar price stood at between US$1 and US$1,20.

The Reserve Bank of Zimbabwe (RBZ) recently removed the retailers’ 10 percent trading limit above the interbank rate to liberalise the market.

Economist and member of the RBZ Monetary Policy Committee (MPC) Mr Persistence Gwanyanya said the interventions sought to address “compliance” inflation, where businesses would increase US dollar margins to achieve desired Zimbabwe dollar prices, which are, in most cases, pegged to parallel market rates.

“It’s commendable that the MPC has been very proactive in coming up with measures to enhance the flow of foreign currency and to liberalise the foreign currency market.

“These measures are seen as supporting stability going into this last quarter, which is the festive season . . .”

Confederation of Zimbabwe Retailers president Mr Denford Mutashu said they are confident prices will remain stable.

“I am optimistic that prices will remain stable. As long as competition remains in the economy, prices will remain stable,” he said.

“However, mealie meal producers need assistance and some level of support from Government in terms of procurement to be able to maintain the current price levels.

“But we remain very confident we will see stable prices over the festive season.”