Zimbabwe prices likely to remain high unless government avails forex

In his inauguration speech, Mnangagwa said that farmers whose land was taken lawfully would be compensated.

Analysts also say that commodity prices are expected to drop after the festive season.

“In any case we expect prices to tumble especially after the 25th of December we expect prices to come down and we also expect that there is going to be stabilisation after the coming down of those prices because demand obviously will go down after the Christmas activity,” Confederation of Zimbabwe Retailers president Denford Mutashu.

Mutashu also said that the tumbling rate in the parallel market will reduce the forex demand with manufacturers closing for the holiday.

However, analysts say that the continuous price increases might increase fuel prices.

“My greatest fear at which both shortages and prices increases are happening, in the next two months will face a dilemma of either increasing the fuel prices or they will be shortages of fuel in this market,” said Mugaga.

So far fuel prices have remained stable.

According to the Consumer Council of Zimbabwe, low-income urban earner monthly basket for a family of six increased from the end-October figure of $593.55 to $598.16 by end of November, which shows a 0,72 percent.- The Source

(243 VIEWS)