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Consumer basket surges to $49,1m
Tawanda Chigwaza, The Herald (Zimbabwe)
June 08, 2006

http://www1.herald.co.zw/inside.aspx?sectid=4116&cat=8&livedate=6/08/2006

THE cost of living for a family of six for the month of May surged to $49,1 million, up by 19,5 percent from the April figure of $41 million, according to statistics released by the Consumer Council of Zimbabwe (CCZ) yesterday.

The CCZ said notable increase were recorded in water and electricity which rose by 185,9 percent, transport costs which rose by 66,7 percent, salt by 51 percent, health by 40 percent while the price of white sugar went up by 34 percent, margarine by 18,3 percent. Vegetables and rent increased by 17,9 percent and 16,7 percent respectively over the survey period.

The consumer watchdog also observed a visible improvement in the supply of roller meal as maize has started trickling into the Grain Marketing Board (GMB) depots countrywide and this might have resulted in the continued decline in the price of roller meal on the market.

In April the price decreased by 22,2 percent, going down by a further 9,2 percent in May.

"The cost of vegetables continues to increase owing to the shortages of local products like onions and tomatoes of which only imported substitutes are available," said CCZ.

The CCZ also observed that the cost of drugs has been on the increase and this could be linked to the 40,8 percent increase in the cost of the health component of the basket.

Last month saw widespread increases in rentals, impacting negatively on consumers as some of the costs are now beyond the reach of the average worker.

"The supply of sugar continues to be erratic and this continues to push its price up each time it is available on the market," said the consumer watchdog.

"The biggest shift in the month of May was recorded in the water and electricity cost component of the basket. Water shortages for most consumers ballooned owing to the tariff increase at the beginning of the month," said CCZ.

The CCZ calls for the respective authorities to clarify the situation as consumers are still in the dark on which authority is responsible for water billing system and the correct tariffs.

"Many consumers have received huge water bills to which they seek clarity on. Electricity tariffs were increased as of the beginning of June, hence consumers are urged to conserve the electricity in order to avoid huge bills at the end of the month," said CCZ.

According to the consumer watchdog, a casual comparison of shopfloor wages and the Poverty Datum Line reflects that some consumers are now forced to forgo some basic food and non-food items owing to the high costs thus compromising their livelihoods.

"Employers are therefore called upon to give their workers salaries that take cognisance of the cost of living. CCZ continues to advocate for the meeting of the Tripartite Negotiating Forum (TNF) parties and we also call on every Zimbabwean to rally behind the National Economic Development Priority Programme (NEDPP) for the betterment of the economic situation," added the consumer watchdog.

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

In view of rising inflation, the CCZ continues to urge consumers to exercise their right to choose and intensify their search for affordable commodities or cheaper substitutes.

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