The prices of basic grocery items have increased sharply ahead of the festive season, potentially making the holidays miserable for the majority of Zimbabweans.

According to the Consumer Council of Zimbabwe (CCZ), the price hikes are attributed by unfavorable government policies, increased demand for goods and the depreciating value of the Zimbabwean dollar against other currencies. As measured by the CCZ low-income urban earner monthly basket for a family of six, the cost of living measured in the local currency increased by 8.56% from ZWL$ 2 958 460.70.

Given the proposed policy measures in the recently pronounced budget statement, in particular, the increase in the corporate tax, the restriction of procurement of goods from manufactures and the imposition of levy on beverages, the cost of living is projected to continue to rise. The demand for most basic products increases during the festive season and based on the previous trends, suppliers often take advantage and raise their prices during the period.

Also, some suppliers have introduced false promotions during the festive season yet their prices would have been inflated just before the festive season. The local currency has also been depreciating at the formal wholesale and also on the parallel market. According to a survey conducted this week, the price of a 10kg bag of mealie meal has increased to ZWL$ 57 427.00 from ZWL$ 44 175.00 at the end of November whilst the price for a 2 Litre cooking oil has gone up to ZWL$ 26 505.00 from ZWL$ 25 938.00.