In the month of September, there was a marked increase in prices as a family of six now needs
over ZWL40,000 (USD150.00 at street value and USD460 at the official exchange rate) a month
to survive, according to ZIMSTAT. This marked a 4.8 percent increase from August’s ZWL37,000
(USD217 at street value and USD425 at official exchange rate).
In February, the bread basket was at about ZWL25,000
The increases do not match what the majority of workers are earning as their monthly salaries
are below ZWL20 000 (USD287 at official exchange rate)
The latest research conducted by the International Labour Organisations (ILO) shows some
workers in the informal sector are earning less than ZWL1 000 (USD5.80 at street value or
USD11 at official rate) with the majority of jobs in the sector being described as “survivalist”.
The latest rise in the cost of living happened as the value of the Zimbabwe dollar on the
parallel exchange market depreciated, pushing more retailers to increase their Zimbabwe dollar
prices.
Even those retailers that still stick to the official exchange rate increased their Zimbabwe dollar
prices.
This situation seriously affected the majority of workers who earn their salaries in Zimbabwe
dollars.
The social inequalities have widened.
Just a snapshot into the changes of prices, even by government agencies, prove that
government continues to remain in denial about the fact that the controlled exchange rate is
not working.
Cooking oil prices have increased by over 50 percent to about ZWL500.00 from about ZWL
320.00 for a two-litre bottle.
This means that at the official exchange rate of about 1USD:ZWL87, cooking oil will now cost
about USD5.70, up from USD3.60.
This goes for many other basic commodities, including Orange crush, Sugar and Washing
powder.
In the last week of September, telecommunications companies increased their tariffs and in the
education sector, schools continued to review their school fees upwards.
As if they have not been racked with pain enough from striving to make ends meet from the
already moribund economy, the government Statutory Instrument 127 of 2021 which seeks to
rein in businesses that benefit from the foreign exchange auction system to use the rate
pegged by RBZ when charging using the US dollar.
This initiative has ignited a rise in inflation as most businesses will be forced to charge very
high prices considering the high street market rate for US dollar.
Commodity/Prices (ZWL)
Sakt 1kg
Mazoe 2l
Sugar 2kg
Mealie-meal 10kg
Cooking oil
0
100
200
Months 2021
300
400
SEPTEMBER
Official Rate: 1USD: ZWL87
Street Rate: 1 USD:ZWL170
500
AUGUST
600
700
800