The prices of goods and commodities in Zimbabwe continue on an upward trend, rising significantly over the past week prompting the government to take desperate measures, The Zimbabwe Gazette can reveal.

Prices Shoot to Record Highs, Government Approaches with Caution

The state has quickly responded to the situation, as it is likely to make citizens suffer more ahead of the presidential election run-off thereby minimising chances of President Robert Mugabe winning.

From the week before last week, when the Reserve Bank of Zimbabwe (RBZ) governor, Gideon Gono relaxed the foreign currency restrictions, local businesses and service providers began chasing and pegging prices that equal to the rising US dollar, against the weakening local currency.

A survey in Zimbabwe's capital, Harare indicates in the past two weeks, prices have escalated by more than 100 percent.

Commenting on the new foreign currency system, the National Economic Consultative Forum (NECF) said the new foreign currency rules and regulations perfectly suite business.

“However, it is the ordinary man- the consumer who suffers the most as a result of the ever-rising inflation which fuels price increases,” said a representative of the organisation recently.

From last week, some basic commodities such as salt and cooking oil began disappearing from the supermarket and shop shelves.

Commodities, which are very scarce such as sugar, mealie-meal, milk and margarine, are only readily available on the parallel (black market) at exorbitant prices.

In most shops, a packet of 2kg rice costs around $1 billion, a bar of washing soap costs $500 million, 2litres of juice costs $800 million, and a kilogramme of beef costs $700 million whilst pork is pegged at $600 million.

The NECF adds the most important person- the consumer is being left behind when crucial decisions are made, for example the recent monetary policy statement.

Supermarket, shops and many businesses removed three zeros from their programmes and systems from late last year.

In the capital, a 21 inch colour TV now costs not less than $50 billion, a DVD player costs not less than $15 billion, a decent pair of shoes costs more than $10 billion, a pair of trousers costs around $5 billion whilst a tie fetches for anything around $2 billion.

For other household furniture such as sofas and cabinets, the prices range in hundreds of billions whilst it is trillions for vehicles and houses.

Many people have expressed concern over the rising prices as salaries remain stagnant, and refer the situation to being political.

One Harare resident who preferred anonymity said it is President Robert Mugabe's fault that the country continues to deteriorate.

“Mugabe does not want to accept that he has lost the election. His policies have totally failed the nation.”

“My salary has for long been not enough to buy the monthly basic necessities,” he said.

On Tuesday, the government said it had scrapped off duty for imported basic food stuffs such as soap, salt and cooking oil.

Speaking on national television, the Minister of Information and Publicity, Sikhanyiso Ndlovu said the move is aimed at ensuring the country receives the necessary basic items for consumption.

“Our country has for long not been able to produce enough for feeding its people. The duty free period shall be 90 days,” he said.

Last year, the government introduced price controls- which 'killed' the industry. Many firms closed down whilst others scaled down operations and retrenched workers. Business slammed this decision in which it blamed the National Incomes and Pricing Commission (NIPC) for making reckless business decisions.

Transport operators have also hiked fares by more than 100 percent in a fortnight.

A commuting trip from Glen Lorne or Highlands to the city costs $150 million. Many routes in the capital now cost $100 million per trip, whilst commuting to cities and towns just outside Harare- such as Chitungwiza, Ruwa and Norton fetches for not less than $150 million per trip.

Apart from the violent campaign embarked on by Mugabe and his loyalists, many people feel the escalating prices and costs of goods and services will also play a major role in making people vote against Mugabe in the anticipated presidential election run-off- in which the date is still to be set.

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