Inflation eroding household security

The Consumer Council of Zimbabwe (CCZ) has warned that inflation continues to erode household purchasing power, with low-income groups experiencing rising vulnerability. The CCZ has revised the cost of its monthly basic needs basket for an average family of six upwards to Zim $ 1.4 million (about US $249 at the official auction rate) from Zim $1.3 million (US $231) in July, spokesman Tonderayi Mukeredzi told IRIN on Monday. "We have noted a wave of increases in some commodities between July and August. Whilst official inflation slowed from January to August, the prices of commodities have progressively increased. It is still a struggle for most consumers to access basic commodities because not many of our workers are taking home Zim $1.4 million," Mukeredzi said. The CCZ monthly needs basket is based on prices of commodities such as cooking oil, maize, bread and milk, as well as water, transport, school fees and rental costs. "We include rent at a minimal level, for a three-roomed home in a high-density setting," Mukeredzi explained. "Not many of our consumers can afford to buy all the things they need. Most in the low-income group have a monthly take-home of between Zim $500,000 [about US $89] and Zim $800,000 [about US $142]. We think that, judging by this basket, not many people would be able to afford three square meals a day," he added. "Meat is one of the commodities that has gone up so much that I don't think many people can afford to have a dish with meat every day - it's out of reach for most people. A kilogram of beef costs between Zim $20,000 [US $3.56] and Zim $25,000 [US $4.45]," Mukeredzi said. According to the Reserve Bank of Zimbabwe, year-on-year inflation slowed to 362.9 percent in July, compared to earlier year-on-year inflation of 622.8 percent in February. However, Mukeredzi noted, the cumulative effect of years of galloping inflation meant that "things people should have as basics are now considered luxuries, even things like bread".