Harare, (New Ziana) – A government minister has said the country experienced stable prices and widespread availability of most basic commodities during the second quarter of the year.
The introduction of the country’s domestic currency, Zimbabwe Gold (ZWG) in April has marked a significant milestone towards economic stability.
The International Monetary Fund (IMF) has said if the prevailing macro-stabilisation is sustained, cumulative inflation in the remainder of the year is projected to be at about seven percent.
In a report to cabinet this week, Industry and Commerce Minister Nqobizitha Ndhlovu said prices and availability of basic Commodities in the economy during the period April to June was largely stable in both ZWG and US$ terms.
He said the ZWG slightly appreciated in value by 0.51 percent against the US$ during the period under review with the tight monetary stance that has been maintained resulting in exchange rate stability, translating into the stability of prices of basic commodities on the market.
“The market is well stocked with mealie-meal and its price has been stable, ranging between ZWG100.01 and ZWG103.8, and between US$5.30 and US$8.50 for (a) 10-kilogramme pack. The price of a 2-litre bottle of cooking oil has been stable as well, ranging between ZWG54.63 and ZWG56.50, and between US$3.30 and US$4.70.
Bread price has also remained stable, ranging between ZWG14 and ZWG14.50, and between US$1 and US$1.20,” he said.
“Sugar supply has relatively improved countrywide and its price has remained stable during the months of May and June 2024. The price of laundry soap remained unchanged, ranging between ZWG23.13 and ZWG23.50 in local currency.”
“The prices of most basic commodities in the formal sector are gradually converging with prices in the informal market, and the prices of some basic commodities, such as cooking oil and mealie-meal decreased, in response to the measures put in place to deal with price increases witnessed during the First Quarter of 2024.”
Ndhlovu said there is improved ZWG uptake in the market, with transactions on Point of Sale swipe machines seen to be dominant in major formal retail outlets. Most outlets have pegged their products in ZWG, while a few still display the prices in US$ although the prices are payable in both currencies.
“In most retail shops, 80 percent of the formal retailers’ transactions are currently in ZWG while 20 percent are in United States Dollars,” he said.
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