Govt concerned over spiking food prices

Zim Now Writer

The government has expressed concern over spiralling prices of basic commodities and established a committee to “investigate and monitor” as retailers make adjustments in response to the fall in value of the Zimbabwe dollar.

The local currency has lost nearly half its value since last year despite various measures introduced by the Zimbabwe Reserve Bank to stem the slide, including gold coins and, lately, gold-backed digital coins.

Although the RBZ’s auction rate stood at ZWL$1 125.00 to the US dollar today, the more widely used black market rate was more than double at between ZWL$2 500 and ZWL$2 700.

A picture showing the retail cost of a lotion which topped ZWL$43 000 trended on social media with users expressing shock at the spike in prices of basic commodities against eroding incomes.

Addressing a post-Cabinet press conference in the evening, Information Minister Monica Mutsvangwa said a Cabinet committee has been established to probe the price increases.

“Cabinet discussed at length the price and basic food supply situation following a brief on the matter by the Minister of Industry and Commerce, Hon. Dr. Sekai Irene Nzenza,” said Mutsvangwa in her statement.

“The nation is being informed that Cabinet is concerned by the spiralling prices of the 14 basic goods, especially bread, flour, cooking oil and mealie-meal.

“The Minister of Industry and Commerce is already engaging the concerned stakeholders, including manufacturers, wholesalers, retailers and other associations on the matter.”

She added: “Given the urgency of the matter, Cabinet has set up a Committee to quickly investigate, monitor and make appropriate recommendations to Cabinet with a view to bringing sanity to the situation.

“The Committee will comprise the following Ministers: Industry and Commerce; Finance and Economic Development; and Information Communication Technology, Postal and Courier Services.