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Harare basic needs basket for July 2011
Poverty Reduction Forum Trust
August 24, 2011

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July 2011 BNB

The cost of the BNB for Harare has risen by US$3.32, from $502.56 in May to $505.88 in July 2011. This increase can be attributed to speculations around civil servants salary increments that were announced in June. Whenever there is a salary increment for the civil servants, retailers normally respond by hiking prices of basic commodities. In addition, The Minister of Finance announced the re-imposition of import duties on a range of basic food commodities during his mid-term year budget review. As a response, supermarkets have raised prices of maize meal and cooking oil, among other staples, by 50 cents to one US dollar . The supply of vegetables (like greens, onions and tomatoes) is still low during this time of the year hence both demand and the prices are high. Detailed cost of the BNB for July 2011 is presented in Table 1. Table 2 compares the BNB for the 10 data collection sites in Harare. Figures 1 presents a trend analysis of the BNB from November 2010 to July 2011.

NB: The BNB is by NO means a measure of the Poverty Datum line (PDL), but is just a reflection of the monthly income that an average family of five requires to enjoy an acceptably decent lifestyle.

Table 2: Comparison of the cost of BNB for all the 10 sites of Harare

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