Prices of basic commodities stabilise

Prices of basic commodities stabilise

By Owen Mandovha

WHOLESALERS and retailers have responded to the economic measures implemented by the government by adjusting the prices of basic goods downwards.

This comes as corrective measures implemented by Treasury together with the Reserve Bank of Zimbabwe’s tight monetary policy to contain inflationary pressures have largely tamed the runaway exchange rate and spiraling prices of basic goods.

The impactful measures have culminated in general price stability and in some instances, wholesale chains have been forced to effect hasty price reversals.

“What we have witnessed is a situation whereby generally, trends of price increases of the past few weeks have been arrested and this is on the back of the stability that have been enjoyed over the last couple of weeks,” said Dr Denford Mutashu, President, Confederation of Zimbabwe Retailers (CZR).

In addition, a survey carried out by Buy Zimbabwe has shown that locally produced goods are now even cheaper than the imported ones, a sign of a positive shift in economic fundamentals.

“We have conducted a survey which shows that the prices of local products is now less than that of imported products and this is because of improving fundamentals,” said Alois Burutsa, chief executive officer, Buy Zimbabwe.

Analysts have commended government for instituting the latest economic measures which have seen the Zimbabwe dollar firming against the United States dollar and the convergence of the parallel market exchange rate and the bank rate is expected to be realised soon due to the dwindling gap between the two.

However, economic commentators have pointed out the need to strike a balance between managing the exchange rate and growing the economy to maintain the aggregate demand.