ZIMBABWE’s food basket for a family of six declined by 4.83 percent to $142.71 last month on the back of sales promotions by some retailers and a recent reduction in excise duty on fuel. The Consumer Council of Zimbabwe (CCZ) revealed this in its monthly report for January 2018.

Recently, the Government slashed excise duty on fuel resulting in the retail price of petrol declining by 3.6 percent to $1.35 per litre, 5.4 percent cut on the retail price of diesel to $1.23 per litre and a 5.6 percent cut on the price of paraffin to $1.17 per litre.

Prior to the downward review of duty, petrol was selling at an average price of $1.40 per litre while the prices of diesel and paraffin were $1.30 and $1.24 per litre, respectively.

“The food basket decreased by $7.24 or 4.83 percent from $149.95 by end of December 2017 to $142.71 by end of January 2018,” said CCZ.

During the period under review, the price of detergents increased by $0.28 or 2.03 percent.

However, the cost of living for a family of six as measured by CCZ last month decreased by 1.16 percent from $ 597.73 in December 2017 to $590.77 last month.

“As CCZ we assume that the reduction of duty on fuel contributed to the decrease in prices and “month-end” special promotions of commodities in various shops,” said the consumer watchdog in the report.

Products that recorded price decreases during the period under review, CCZ said, were mealie meal, cooking oil, tomatoes, beef and onion. The consumer watchdog noted that price increases were recorded in margarine, tea leaves, fresh milk, flour, cabbage, washing powder and laundry bar.

It said prices remained constant on brown sugar, bread, and salt and bath soap. In light of a reduction in excise duty, the Confederation of Zimbabwe Industries projected that prices of some basic commodities would drop by five percent.

In the past few months, some unscrupulous businesses have increased prices of basic commodities by very wide margins driven by speculative tendencies and profiteering. An ad-hoc committee has since been established to deal with wanton price increases of basic commodities.

The Government has also been working together with industry captains to find measures to arrest the price hike menace.

Source- Chronicle