Govt says price stability restored after chaotic period
By Nkosana Dlamini
The government says it has restored stability in the pricing of basic goods following a chaotic period early this year which saw some big retail outlets close shop with some forced to destock as a result of price disparities between formal and informal businesses.
At a post-cabinet media briefing in Harare on Tuesday, Information and Publicity Minister Jenfan Muswere said routine surveys carried out by the Ministry of Industry and Commerce on a targeted list of basic goods has shown a “positive correlation between the movements in the prices of basic commodities and exchange rate movements”.
“Cabinet considered an update on price movements and the availability of basic commodities in the domestic market for the period January 2025 to March 2025,” Muswere said of routine surveys carried out to monitor prices and the availability of basic commodities in efforts to promote consumer welfare in the economy.
The surveys target 14 basic commodities namely: mealie-meal, laundry soap, cooking oil, bread, sugar, flour, rice, bath soap, washing powder, powdered/fresh milk, eggs, beef, chicken and salt.
“The public is advised that there is a positive correlation between the movements in the prices of basic commodities and exchange rate movements,” said the minister.
“On a positive note, the gap between the official and parallel market rates has been narrowed during the period under review. It has also been observed that local products continue to dominate shelf space in both the formal and informal sector outlets.
“The period under review witnessed the wholesale and retail sectors facing significant viability challenges resulting in branch closures, destocking and reduced operations by some of the retail outlets.
“Compliance inspections undertaken by the Ministry have resulted in 137 prosecutions, issuance of 245 compliance notices and the seizure of 3,427 units of different products.
“The current tight Monetary Policy is yielding results in the containment of inflationary pressures and maintaining exchange rate and price stability.”
