Herald Reporters
PRICES of basic goods have shot up incredibly to beyond the reach of many over
the past few months, in violation of Government price controls with retailers
blaming suppliers.
Despite the Government’s warning that it had not changed its position on price
controls, many shops have raised prices far above the listed prices
Most shops have either ignored or dismissed the Government’s warning that
those found overcharging would meet the full wrath of the law.
The retailers say that they continue to apply their standard mark-ups for each
category and blamed their suppliers for the rapid increase in prices.
"Suppliers caught us by surprise as we had ordered goods at low prices only
to receive the goods at the high prices on delivery so we were left with no
choice but to shift the burden onto the consumers," said a manager with a
supermarket in down town Harare.
A loaf of bread now costs between $850 and $1 000 while the price of a
250-gramme packet of tea leaves is ranging between $800 and $1 000.
Milk prices have also gone up with a 500ml packet selling for $520. The milk
has, in fact, been repacked into 300ml and 750ml packets which cost $450 and
$750 respectively.
Early this year, Dairibord Zimbabwe Limited was fined $1,5 million for selling
milk in smaller packets without approval from the Ministry of Industry and
International Trade.
A kilogramme of beef now costs between $5 500 and $10 000, salt is selling for
as much as $1 700 for a kilogramme, a 2kg packet of rice now costs $6000 while a
750ml container of cooking oil costs close to $4 000.
A bar of soap now costs between $2 235 and $4 000, up from about $600 four
months ago, while prices of bath soaps range from $2 500 upwards.
Many families no longer buy bath soap opting to use laundry soap.
A 100ml toothpaste tube is selling for more than $4 800 in some supermarkets,
while a 100ml bottle of Vaseline costs over $1 500.
The price of fresh and dried kapenta or matemba, which used to be quite
affordable and was the source of protein for many families, has shot up and now
costs $7 500 for a kilogramme. A 500-gramme packet of soya-meat chunks costs $1
215.
In January a family of six required $77 768 worth of groceries a month, but this
figure shot up to more than $88 578 in February, $107 304 in March and $132 226
in April.
By May the same family needed $181 260 and in July it needed $213 489 against a
minimum wage of $47 000 a month.
These runway prices of basic commodities have seen a lot of people change their
lifestyles dramatically in order to survive.
A balanced diet is something that only a few can afford, while the rest settle
for whatever is available.
Gone are the days when families sat down to Sunday breakfast with cereal, tea,
juice, toast, egg, bacon, baked beans, sausage and tomato as only a lucky few
can manage tea and bread.
Some families have even cut down on washing clothes and do it only once a week
to save soap.
Washing powder now costs between $9 500 and $12 000 a kilogramme and fabric
softeners that are equally expensive are now considered a luxury.
The survivor on the street these days is the man who can think of alternatives.
Many people said they had now found alternatives for bread in sweet potatoes,
pumpkins, yams and porridge while others said they had to contend with going
about their business on empty stomachs until they returned home for supper.
Traditional food that had been replaced by exotic and fine foods is slowly coming
back into many homes and this food has crossed the suburb divide from Mbare to
Borrowdale.
Bread has become part of the luxury foods for many families who now prefer sweet
potatoes, yams and pumpkins that nutritionists describe as healthier.
People are now opting for chicken intestines and gizzards as well as the legs
and heads, while some families have become vegetarians because they cannot
afford to buy meat.
There has also been an increase in the number of people who bring packed lunches
to work. Both men and women said they now opted to bring food from home as lunch
in town and the industrial area was unaffordable.
The price of a plate of sadza in town ranges between $1 400 and $5 000 while
take-aways sell at between $3 000 and $20 000.
There is also an increase in the number of people who have turned to fruits as a
result of the hardships.
Bananas and oranges are the most popular. They cost between $30 and $150.
Many found buying fruits said they had realised that fruits were more affordable
and healthier.
"It is better to eat a fruit at lunch then have supper at home. Fruits are
healthier than all these fast foods anyway and if life has become this hard, we
better turn to them," said Ms Elizabeth Chikwanha of Eastlea.
Another culture that has cropped up as a result of the biting prices of basics,
is the culture of bargaining.
Consumers said they had since done away with impulse buying and always looked
around as many shops as possible before buying something.
This is, however, being hampered by the use of plastic money and people end up
buying from wherever they can use their cards.
Despite the increases, the director of price controls in the Ministry of
Industry and International Trade, a Mr Ndlovu said price controls were still in
place but they had been placed in two categories. These are the gazetted goods
and the price monitored goods.
Mr Ndlovu said commodities like maize and wheat together with flour and mealie-meal
were under strict control and the Government gazettes their prices.
Under price monitoring, manufacturers and the ministry agree on a price the
commodity is supposed to be sold at.
He said commodities such as soap and cooking oil have been dropped from the
first category where the Government used to gazette their prices.
However Mr Ndlovu could not be drawn into commenting whether this meant all the
recent price increases have been approved by the ministry, referring all
questions to the Secretary for Industry and International Trade who could not be
reached for comment.
Efforts to get a comment from the Consumer Council of Zimbabwe’s acting
executive director, Mrs Rosemary Mpofu, were fruitless as she was said to be out
of office and did not reply messages left with her secretary.
"An average person now needs as much as $200 000 for groceries that do not
even last a month and imagine with the kind of salaries that we earn, how are we
expected to survive," said an angry customer in a supermarket along First
Street.
Economic analysts say with the present rate of inflation of 399,5 percent,
employees would need a salary and wage adjustment of not less than 700 percent.
Of the 399,5 percent year-on-year rate of inflation in July 2003, increases in
food prices accounted for 156 percentage points while non-food items in the
Consumer Price Index accounted for 243,5 percentage points.
Food inflation prone to transitory shocks stood at 480,8 percent gaining,
46,8-percentage points on the June 2003 rate of 434 percent.
The increase in month-on-month inflation in July 2003 was accounted for by
increases in the average price of beverages, bread, cereals, meat, rent and
rates.
The month-on-month food inflation stood at 17,8 percent in July 2003 dropping
6,6 percentage points on the June 2003 rate of 24,4 percent.
The month-on-month non-food inflation stood at 16,5 percent dropping 3
percentage points on the June 2003 rate of 19,5 percent.
The increase in year-on-year inflation was largely accounted for by increases in
the average price of oils and fats, beverages, milk, cheese, eggs, meat and
public transport.
Pushing inflation to such high figures is demand-pull inflation as well as
cost-push inflation.
Demand-pull inflation is emanating from the scarcity of certain commodities
thereby pushing prices up according to the simple law of supply and demand.
The manufacturers of the commodities that are increasing prices when they please
are mainly driving cost-push inflation.
Government has therefore been urged to seriously look at the situation and come
down hard on the overcharging manufacturers.