Economic Updates - Featured - Local - Top Stories - June 15, 2021

Stability to be retained in the food market

By Staff Reporter

Food prices are anticipated to drop or at least remain stable following a booming agricultural season which saw a surge in availability of most farm products on the local market.

The successful 2021 agricultural season is expected to further harness this trajectory on the back of increased availability of food products on the local market.

Treasury has instituted measures to contain inflation which has borne some fruits with year on year inflation drastically declining over the last twelve months.

President of the Confederation of Zimbabwe Retailers Denford Mutashu said food prices are the biggest contributor to inflationary movements hence this bumper harvest will help to arrest price movements.

“The consumer basket has largely been comprised of food components. Retail prices are expected to be relatively stable given that the demand for goods will be met by increased supply of commodities on the market,” he said.

Economist Titus Mukove envisages inflation to reach double digits in the coming months adding that stable food prices will help to achieve that.

“Over the last couple of years, persistent droughts have led to increase in prices due to imported inflation. This season is expected to be a game changer due to increased product availability especially of grain and related products,” noted Mukove.

Zimbabwe inflation which reached a record high of 837.53 percent in July 2020 continues to recede and currently stands at 168 percent as of May as strategies to arrest the spiralling inflation rates continue to bear fruit.

 

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