/ 13 June 2007

Cost of living soars 66% in Zimbabwe

The cost of living for an average urban family in Zimbabwe rose by 66% last month, the country’s consumer watchdog said in its latest report on Wednesday.

The Consumer Council of Zimbabwe (CCZ) said the cost of living for a family of six increased 65,6% from Z$3,3-million ($13 300) in April to Z$5,5-million in May.

”Price increases continue to bring about suffering to the majority of consumers,” CCZ executive director Rosemary Siyachitema was quoted as saying by the state-run Herald newspaper.

The consumer rights body said notable increases were in the prices of water and electricity which went up by 251% during the month, clothing and footwear which rose by 241% and transport which went up 150%.

The cost of living is calculated by adding up the prices of a basic basket of goods and services an average household requires to survive — including foodstuffs, transport and basic healthcare.

A family with an income below this margin is classified as poor.

Currently, an estimated 80% of Zimbabwe’s 13-million population is deemed to be poor, with families often skipping meals or doing without items such as milk and meat in order to stretch their income to the next pay day.

Last month President Robert Mugabe signed the National Incomes and Pricing Act into law as part of a clutch of measures aimed at reining in galloping prices.

A fortnight ago the government, business and labour signed a social contract to mend the inflation-ravaged economy and reduce month-on-month inflation by 25%.

Zimbabwe’s economy is in its seventh year of economic crises characterised by world-record inflation currently perched at 3 714% and chronic shortages of basic goods like cooking oil and sugar spawning a burgeoning black market.

The Central Statistical Office was expected this week to announce the latest inflation statistics. – Sapa