Basic goods prices in Zimbabwe expected to rise further following fuel price hikes
via NewsDay Zimbabwe5 min read
A new report warns that prices for basic food items, other commodities, and services in Zimbabwe are projected to continue increasing in the coming months. This forecast follows recent government-imposed fuel price hikes, which saw diesel rise to US$2.11 per liter and petrol to US$2.23 per liter. The Zimbabwe Energy Regulatory Authority adjusted these pump prices, attributing the increases to rising global energy costs influenced by the conflict involving the United States, Israel, and Iran. However, analysts question this explanation, noting that Zimbabwe is one of only two countries in the region, alongside Malawi, where fuel exceeds US$2 per liter, suggesting domestic cost build-ups are a primary driver. The Famine Early Warning Systems Network reported that petrol and diesel prices increased by 39% and 34% respectively from February to March, leading to immediate public transport fare increases of 50% to 100% and a 10% rise in bread prices. The Zimbabwe National Statistics Agency recorded a 0.4% increase in monthly ZiG, US dollar, and blended headline inflation from February to March, which Fews Net links to these fuel price increases. Further price hikes for basic goods and services are anticipated, potentially eroding the purchasing power of low-income households and affecting food access. Fews Net also predicts shortages and price increases for fertilizers, which could negatively impact agricultural production. Despite the government removing excise duty, the Zimbabwe
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This summary was AI-generated from a story originally published by NewsDay Zimbabwe.
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