ZIMBABWE'S Consumer Council (ZCC)
has said the latest jump in inflation would put the price of basic commodities
further beyond the reach of the urban poor.
The Central Statistical Office pegged the
inflation rate for June at 364.5 percent, more than 64 percent up from the
previous month's high of 300 percent.
"Price increases continue to push the cost
of living for the urban poor well above their income levels," CCZ director
Elizabeth Nerwande told IRIN.
The CCZ estimates that an urban household of six
members would now need over Zim $200 000 (about US$241) per month to cover its
basic needs. On average a domestic helper in Zimbabwe earns Zim $25 000 (about
US$30) per month, while a court orderly's salary is $60 000.
"In high-density suburbs across Harare (the
capital) we are seeing people facing real poverty. Most people have exhausted
their coping mechanisms and are living from hand to mouth. And the situation is
unlikely to improve, given the broader economic crisis in the country,"
Nerwande said.
A government decision in May to suspend price
controls on some commodities had "slightly" improved the situation.
"Some basic foodstuffs have re-appeared on
shelves in supermarkets, but these are often sold at parallel market prices and
are unaffordable for most households," Nerwande said.
Earlier this week bakers unilaterally hiked the
price of bread from Zim $550 (US 60 cents) to Zim $1 000 a loaf, following an
increase of more than 1 000 percent in the Grain Marketing Board's (GMB) selling
price of wheat.
In response to the price hike consumers boycotted
bread, forcing retailers to reduce the price to $800.
Nerwande also raised concerns that the current
inflation rate did not reflect reality, because it ignored the thriving parallel
market where prices were almost double controlled rates.-IRIN.