Q2 maintains price stability owing to tight moneta...

Q2 maintains price stability owing to tight monetary Policies

Oscar J Jeke

Prices of basic commodities such as mealie-meal, cooking oil, sugar and laundry soap have witnessed stability in the Second Quarter of 2024, government has revealed, with such success attributed to tightened monetary policies, that have also resulted in increased uptake of the local currency against the United States dollar during the same period.

The Zimbabwe Gold has reportedly gained a significant value in the market, marking an increase of 0.51 percent, also resulting in exchange rate stability, dominating transactions on Point of Sale Swipe machines.

Speaking during the post-Cabinet press briefing in Harare on Tuesday, Information, Publicity And Broadcasting Services minister, Jenfan Muswere said that the industry has adopted the ZWG well which has resulted in most payments and transactions in retail outlets being dominantly in local currency, which has also seen price stability during Q2 of 2024 as compared to the unstable market value appreciation of the ZWG during the first quarter resulting in changing prices of basic commodities.

“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 in United States Dollars currency for 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 in United States Dollars. Bread price has also remained stable, ranging between ZWG14 and ZWG14.50, and between US$1 and US$1.20 in United States Dollars.

“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.

“Most outlets have pegged their products in ZG, while some few still display the prices in United States Dollars, although the prices are payable in both currencies. In most retail shops, 80% of the formal retailers’ transactions are currently in ZWG, while 20% are in United States Dollars,” he said.

Government introduced the market driven exchange rate in place of the old inter-bank rate, as well as penalties on violation of the determined rate which has resultantly kept retail outlets and businesses in line due to the heavy fines, that also include revocation of licences.