A low-income urban family of six now needs just over $1 million a month to survive, up from $611 275 in April, according to the Consumer Council of Zimbabwe.
CCZ director Rosemary Mpofu said the cost of living rose by 62% between April and May in Zimbabwe dollar terms.
However, during the same period, the prices of goods and services in United States dollars went down by 31.4 %. She said:
The Consumer Council of Zimbabwe low-income urban earner monthly basket for a family of six stands currently at $1 015 962,61.
This is a sharp increase because the basket has shot from the month of April, where it was $611 275.
When we look at the basket as we measure it, we find out that the low-income earner is mainly earning in the Zimbabwean dollar.
Related Stories
But the cost of living has really increased from the April figure to the May figure and it has constituted a percentage increase of 62.2%.
The new analysis that we use in US$ has decreased by 31.4% so prices have increased in Zimbabwe dollar terms and yet in US$ have decreased by 31.4%.
The astronomical rise in the cost of living follows a sharp fall in the value of the Zimbabwe dollar over the past few weeks.
Last month, the Zimbabwe dollar fell by nearly 60% on the official market.
On Tuesday this week, the local currency fell from US$1: ZWL$2 577 set by the central bank on 30 May 2023 to ZWL$3 673.
The latest statistics by the Zimbabwe National Statistics Agency (ZIMSTAT) indicate that the annual inflation rose by 11.3 percentage points from April to 86.5% in May.
However, Steve Hanke, a professor of Applied Economics at Johns Hopkins University, argues that Zimbabwe’s inflation is at 717%.
Leave Comments