Price distortions erode civil servants salaries

Patience Rashai

Government efforts to cushion civil servants from economic hardships have turned out futile as retailers have responded by hiking prices on basic commodities, following their 29% salary increment, this April.

Members of the Zimbabwe National Army (ZNA), Zimbabwe Republic Police (ZRP), Airforce of Zimbabwe, prison officers, nurses, started accessing their salaries on the 12th of April, while those in the education sector, the rest of the civil service and pensioners are yet to access theirs, as Government promised.

Civil servants have since had their joy cut after some retailers swiftly moved to increase prices on most commodities, eroding their income in the process.

Bread which was generally going for $2,20 has rose to $3,50; 10kg of mealie meal shot from $9,10 to $15,30; cooking $13,25 from $9,90; 2kg sugar $5,29 from $3,99; among other commodities.

Zimbabwe Retailers Association (ZRA) cautioned other retailers to abstain from such behaviour adding that this would translate to unjustified inflation.

“While we are operating in a stiff economic environment it is not necessary to sabotage Government efforts to upgrade employees living conditions, only economic saboteurs would embark on such a move,” said ZRA, president, Denford Mutashu.

Consumer Council of Zimbabwe (CCZ), executive director, Rosemary Siyachitema also castigated this move saying that eventually it will erode the consumers’ bottom line.

“The hike of prices has an impact on consumers, and the increase eventually ends up being a burden on consumers. It seems these prices are being affected by the parallel market rates which have increased sharply over the last week,” said Siyachitema.

The Grain Millers Association of Zimbabwe (GMAZ) have warned of an impending rise in the price of mealie-meal, citing increased maize producer price as well as rising costs, but it still has not gazetted a price, yet we already have retailers who have shot prices up.

Other retailers argued that they were responding to the rising inflationary pressures, stemming from a depreciating local currency, and foreign currency shortages.