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Family budget surges to $11,6m
Kudzai Chawafambira, The Herald (Zimbabwe)
November 04, 2005

http://www.herald.co.zw/index.php?id=48450&pubdate=2005-11-04

THE monthly budget for a low-income urban family of six surged to $11,6 million in October, a 20,9 percent increase from the September figure of $9,6 million, the Consumer Council of Zimbabwe has said.

Major movers such as cooking oil, which went up by 119 percent, roller meal 45 percent, meat 31 percent, bath soap and transport, among others, propelled the basket beyond the reach of thousands of families.

"The continued rise in prices of basic commodities has condemned many families into dire straits, including some who were in the middle-income bracket.

"The incessant rise in the price of roller meal, bread, cooking oil and sugar among others, is a major worry to consumers," said the consumer watchdog.

A 20kg bag of the Grain Marketing Board’s Silo roller meal costs $90 000, but most supermarkets stock refined mealie-meal which costs anything between $115 000 and $160 000 for a 10kg packet.

A standard loaf of bread now costs $29 000 way above the gazetted price of $7 500.

The CCZ notes with concern price disparities of goods and services and warns consumers against being ripped off by unscrupulous traders.

Although the economy is drifting towards free market forces, the huge price jumps experienced in recent months continue to boggle consumers and economists alike.

It is against this background that the consumer watchdog is urging consumers to shop around, critically examine prices displayed and to compare prices before parting with their hard-earned money.

The consumer watchdog’s low-income urban monthly basket reflects that many families are becoming increasingly vulnerable to poverty and hunger as shortages of basic commodities continue unabated and price adjustments occur almost on a daily basis.

Surveys for the consumer basket are conducted twice a month while the basket is calculated by averaging the prices of goods from retail outlets throughout the country.

The CCZ’s basket accurately depicts the cost of living in Zimbabwe and if it was adopted as the official Poverty Datum Line (PDL), millions of families would be classified as living in abject poverty.

The consumer body recently established an information and resource centre that will act as a one-stop shop in providing comprehensive services and information on consumer rights.

This would enable consumers to have a degree of self-protection, as they will enter the market with a critical mind.

CCZ Monthly Budget for Family of Six

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