Source: USD prices start declining | The Sunday Mail
Emmanuel Kafe
PRICES of basic commodities in United States dollars have begun declining in major supermarkets, driven by improvements in product supply and reduced inflationary pressures, a recent market survey by the Consumer Protection Commission (CPC) has shown.
This trend, observed between the week ending October 18 through to last week, indicates a movement towards price stability in the market, according to the CPC.
CPC data shows that there was a 1,4 percent decline in the price of cooking oil, which is now retailing at an average price of US$3,50, down from US$3,60.
There was also a notable drop in the price of rice, with the retail price of a 2kg packet dropping by 17,5 percent from US$3,15 to around US$2,50.
Prices of sugar and beef held steady at US$3 per 2kg packet and US$5 per kg, respectively, while the cost of fresh milk fell by 2,9 percent to US$1,65 per litre from a high of US$1,70.
Mealie meal and soap prices remained stable at US$6,50 and US$1, respectively.
In an interview with The Sunday Mail, CPC research and public affairs manager Mr Kudakwashe Mudereri said the recent decline in prices was a positive economic indicator, suggesting a trend towards market stability.
“This decline may reflect improved supply conditions, reduced inflationary pressures or increased efficiency in production, all of which can contribute to a more stable economic environment,” he said.
“Such stability can bolster consumer confidence and encourage spending, while also presenting challenges for producers regarding profit margins.
However, the survey also noted a shortage of certain basic commodities, including cooking oil, mealie meal and rice in larger supermarket chains across all surveyed areas.
“In contrast, the shelf occupancy of basic commodities in small shops is above average, which could be attributed to the fact that manufacturers prefer to sell their products to the small shops that pay exclusively in US dollars, compared to big supermarkets making most of their payments in ZiG,” he added.
“The data indicates that small shops provide a more affordable alternative for consumers seeking basic commodities.
“This pricing advantage may stem from their ability to adapt quickly to market fluctuations and inflation risks.”
Economist and member of the Confederation of Zimbabwe Retailers Mr Hendrick Chipfika said the recent price reductions were a welcome development for consumers, particularly low-income households.
“This downward trend in prices is likely to have a positive impact on the overall cost of living, particularly for low-income households that spend much of their income on essential goods,” he said.
“The price drops in cooking oil, rice and fresh milk, among other commodities, will provide relief to consumers who have been struggling with high inflation rates and currency volatility.”
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