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Lionel Depute Herald Reporter
Prices of basic consumer goods have shot up with the Consumer Council of Zimbabwe (CCZ) attributing the increase to the introduction of the Statutory Instrument 20 of 2017 and fluctuating fuel prices.

A survey carried out by The Herald established that prices of several basic consumer goods had gone up by different margins.

The cost of living as measured by the Consumer Council of Zimbabwe’s low income urban earner monthly basket for a family of six increased from the December figure of $577,97 to $590,52 by end of January 2017, showing an increase of $12,55 or 2,17 percent.

Statistics from the CCZ show that the food basket increased by $11,30 or 8,49 percent from $133,06 by end-December 2016 to $144,36 by end-January 2017.

The price of detergents increased by $1,25 or 11,46 percent from $10,91 to $12,16.

CCZ executive Director Ms Rosemary Siyachitema attributed the increase in prices to the introduction of 15 percent VAT under Statutory Instrument (SI) 20 of 2017 on rice, meat and other products.

“The CCZ continues to encourage consumers to shop conscientiously and to always buy certified products. Where the products are not certified, to exercise their right to information by carefully examining if the products they are purchasing are well labelled, packaged and provided with vital information such as manufacturing and expiry dates and ingredients used in the make-up of the products,” she said.

The price of cooking oil remained unchanged by end of December.

Increases were registered in the price of meat, mealie meal, bread, washing powder, soap and salt by end of January.

Ms Siyachitema said CCZ did not regulate prices but only monitored the movement in product prices.

“We do not regulate prices. It is not our mandate,” she said.

“We are pushing for the Consumer Protection Act, which has not been gazetted, so that it goes to Parliament. That way prices can be regulated if it is accepted by the law,” she said.

Zimbabwe Retailers Association president Mr Denford Mutashu said some supermarkets and retailers only adjusted prices after promotions during the festive season, they didn’t increase prices.

He said most retailers had promotions during the festive season and prices of some goods were reduced. He said now retailers were simply correcting the prices.

“There is stiff completion in the retail sector. In some cases it is price adjustment. There are some goods such as tomatoes and cabbages that have been affected by rains. These are now in short supply and demand has increased. The increase is temporary. ZRA will check on the price increase and we want to know the reasons why some retailers increased prices,” he said.

He said the introduction of SI20 could also have resulted in the price increases.

“The increase in meat price has to do with the 15 percent VAT. This is a high mark-up on any product and retailers who operate on five to 10 percent mark up. Retailers will then pass on the cost to the consumer.”

“We encourage more players in the manufacturing sector so there is greater competition. There are few soap makers and the situation would improve if more manufactures came on board,” he said.