…As monthly basket price reaches ZWL $1 million
Beverly Bizeki
The economic hardships prevailing in the country have reached yet another level with the monthly basket jumping to ZWL $1 million this month burdening most workers who are earning the Zimbabwean dollar forcing them to call for dollarization and paying salaries in United States Dollars.
With prices of basic goods in local currency skyrocketing, the demand for foreign currency is on the peak as consumers are turning to informal traders to buy goods.
10 kg mealie meal is now costing an average of RTGS $22 000 while 1kg packet of sugar costs around RTGS $8 000. Cooking oil now cost RTGS $24 000 on average.
For street vendors who seem to have stolen the limelight, cash crunched citizens are asked to pay US$2, 50 per 2kg sugar while cooking oil costs US $3, 50 per 2litre.
The Consumer Council of Zimbabwe Director Rosemary Mpofu has revealed that the cost of living in Zimbabwe dollar terms rose by 62 percent between April and May resulting in increase of the monthly basket.
“The consumer council of Zimbabwe low urban income earner monthly basket for a family of six stands currently at ZWL $1 015 961.This is sharp increase because the basket has moved from the month of April where it was ZWL $611 275 up to ZWL $1 015 962.
“The low income earner is mainly earning in the Zimbabwean Dollar but the cost of living has really increased from the April figure to the May figure and it has constituted a percent increase of 62, 2 percent,” said Mpofu.
Progressive Teachers Union of Zimbabwe President Dr Takavafira Zhou said there is need for government to restore sanity by not increasing the salary in RTGS but rather by paying workers’ salary in USD.
“Any attempt to increase the RTGS is merely fueling inflation as prices of basic commodities will sky rocket and erode the buying power. Extra ordinary challenges need extra ordinary solutions.
“As a stop gap measure, there is need to restore the purchasing power parity of workers’ salaries by paying a basic salary of US$540 and maintaining the current allowances. We, therefore, need a political, economic and social hygiene in Zimbabwe in order to give workers, particularly teachers, a breathing space,” said Dr Zhou.
Zhou also called for the stepping down of the Finance Minister Professor Mthuli Ncube saying he is the chief architect of the economic challenges Zimbabwe is facing.
“No wonder why Prof Mthuli Ncube must resign forthwith as the chief architect of the current economic challenges emanating from his so called austerity for prosperity, and US$1 = RTGS $1 that has turned out to be a diagnosis that tries to treat a patient by killing him/her,” said Zhou.
The Zimbabwean dollar this week fell from US $1: ZWL $2 577 to US$1: ZWL $3 673.
