The Zimbabwean government on Friday authorised new increases in the prices of basic foodstuffs in a bid to ease widespread shortages that followed an order for retailers to halve their tariffs.
The National Incomes and Pricing Commission announced it had approved rises of between 50% and 200% for a range of staples, including a bag of sugar, which will now cost Z$255 232, up from Z$84 000.
A packet of milk has been increased by 51,51% while retailers will also be able to raise the price of a bag of fertilizer by 82,39% to cost Z$893 714.
Supermarket shelves were left bare and shopowners have been battling to replenish their stocks since June when President Robert Mugabe’s government launched Operation Dzikisa (Reduced Prices), forcing shops and businesses to halve their prices.
Mugabe accused businesses of colluding with his foes in the West to push prices beyond the reach of many and ignite a popular revolt against his rule.
Although the price crackdown was initially welcomed since it enabled Zimbabweans to stock up on goods that had been beyond their budget, it led to widespread shortages with manufacturers unable to cover the cost of production.
The government, which is trying to rein in an annual inflation rate that currently stands at more than 6 500%, also approved rises last month.
Central Bank chief Gideon Gono promised last week that he would help to restock empty shelves by the end of the month.
Zimbabwe is facing widespread shortages of basic commodities such as sugar, the staple maize meal, soap and cooking oil from the formal market, although the products are readily available on the parallel market. — AFP