THE decline in the cost of living as per October consumer survey is insignificant because a majority of residents are wallowing in abject poverty due to high unemployment while the few employed earn way below the poverty datum line, analysts said yesterday.
GAMMA MUDARIKIRI OWN CORRESPONDENT
According to the recent statistics released by the Consumer Council of Zimbabwe (CCZ), the cost of living for an urban family of six decreased by 0,89% to $561,03 last month, largely pushed down by a drop in food prices.
The CCZ said in the month of October, the food basket shed $4,89 to $149,69 as prices of most commodities recorded a marginal decline.
CCZ attributed the drop in prices to promotions currently running in various supermarkets.
But consumers and economic analysts who spoke to Southern Eye yesterday said the prices were still out of reach for most Zimbabweans, particularly considering the unemployment rate estimated at above 80%.
“The majority of Zimbabweans are jobless and $561 is too much for them to afford,” economic analyst John Robertson said.
The government has been criticised for failing to create a friendly investment environment to facilitate job creation due to policy misalignments which scare away investment.
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Robertson attributed the slight decline in food prices in October to the stiff competition in the retail sector with the emergence of new players in the market, adding that most retailers have been forced to reduce their prices because of the low buying power due to unemployment.
Consumers who spoke to Southern Eye said they had not felt any change as they shopped in supermarkets and other retail outlets.
