The Consumer Council of Zimbabwe (CCZ) says a family of six now requires $2,6 million a month to survive, up from $2,5 million in June 2023.
The cost of living in Zimbabwe as measured in the local currency by the Consumer Council of Zimbabwe’s low-income urban earner monthly basket for a family of six increased, from the June 2023 figure of $2 567 480 to July ($2 680 018) by July 31, 2023.
In particular, this basket rose marginally by 4, 75 % from $2, 5 million to $2, 6 million. In US$ terms converted at the supermarket mid-rate, the basket increased by 24, 5% from $434, 46 to $540, 76 during the same period. Prices of commodities shot up by 24, 5% in United States dollar (US$) terms. The main drivers of the basket were utilities including water, rates, electricity and rentals. Health was also another significant shaper to the basket as it rose by 135% in local currency. The cost of health services has also jumped 135%.
NewsDay has been tracking the prices of some commodities in local retail shops and noted that prices of some basic commodities have been going up, while others went down slightly.A standard loaf of bread was being sold for $3 499, 99 on June 7, 2023, and shot to $5 799, 99 on July 23, 2023. On June 7, 2023, a 1kg packet of sugar was pegged at $4 999, 99 and went up to $8 845 on July 23, 2021. Sanitary pads, which were pegged at $3 449, 99 on June 7, now cost $4 999, 99, while a 100ml tube of toothpaste, which cost $3 199, 99, has gone up to $4 399, 99. A packet of 500g powdered milk which was pegged at $27 999, 99 is currently selling at $31 999, 99.
Despite the increases in living costs this time around, the rates were much lower compared to previous months. The local currency has been appreciating in value against the US$ at the official exchange rate which saw the Zimdollar gaining value from its heaviest fall of $6 926, 57 in June against the US$ to $4, 559.7414 as at 8 August 2023. The price movements in most retail shops have not been proportionate to the appreciation in the Zimdollar experienced in July 2023. Prices of commodities are not going down at the same rate the Zimdollar is appreciating its value.
Our inflation is still too high and according to Global Economy, Zimbabwe is ranked second globally for having the highest inflation rate. Hence for prices of commodities to go down some variables will come into play.
Statistics released by the Zimbabwe Statistics Agency (Zimstat) showed that the Food Poverty Line as at June 2023 was $69 941.05 and the Total Consumption Poverty Line stood at $91 171.62 per person in June 2023. In July 2023, the FPL stood at $99,545.95, indicating an increase of 9, 2% from the June 2023 figure. This means that an individual required that much to purchase both non-food and food items as at July 2023 in order not to be deemed poor. This represents an increase of 149, 3% when compared to the April 2023 figure of $39 927.46.
To cushion employees against the current economic hardships as the cost of living is increasing and salaries continue to be eroded. Organisations in various sectors of the Zimbabwean economy have reviewed their stuff remuneration and benefits to supplement salaries that are being eroded by the inflationary pressures. In the third quarter (Q3) of 2023 most organisations reviewed their stuff salaries and benefits upwards, with some introducing foreign currency (USD) based benefits and indexing salaries to USD.