December 7 Edition
The ZWL ZEBRA Grocery Index showed inflation of 1.02% in the 7 days ending 7 December 2022 (Table 1).
Basket items such as beef, apples, pork, deodorant, and margarine with beef having the highest price increase of 16%. The 4-week moving average index shows inflation of 0.76%; cumulative 4-week inflation was 3.06%.
Regarding USD inflation, at the official rate of ZWL 661.71, dollar prices decreased by 0.01% over the last 7 days. At the parallel rate of approximately ZWL 850-880 compared to ZWL 850 a week ago, dollar prices decreased by 1.30% (Tables 2 and 3).
This week, we looked oats prices in the regio
1kg Jungle oats in Zimbabwe costs ZWL 3,622.50 on average across the supermarkets we survey. The same product in South Africa, Zambia, and Botswana costs 42.66 Rand, 54.49 Zambian Kwacha, and 31.45 Pula, respectively (or USD 2.49, 3.16, and 2.44, at official exchange rates, respectively, an average of USD 2.69 and a standard deviation of 0.4 over these three countries). With the caveat that cost structures are somewhat different across countries, the pricing in our neighbouring countries suggests that in Zimbabwe, 1 kg Jungle oats is priced at an average exchange rate of ZWL 1,361.94 with a standard deviation of 187.29.
What else happened this week
Zimbabwe’s Treasury announced that USD 80 million secured under the International Monetary Fund (IMF) Special Drawing Rights (SDRs), would be allocated to the productive sector. The government has invited local businesses to start accessing the funds to boost Zimbabwe’s economy. While SDRs are not a currency, they are a critical international reserve asset created by the IMF to supplement the official reserves of member countries to provide liquidity. The SDRs were introduced to address global needs for reserves, building confidence and fostering resilience and stability for member countries to cope with the adverse impacts of Covid-19 (Herald, 5 December 2022).
About the Index…
The ZEBRA Grocery Index measures changes in the cost of a typical basket of goods in supermarkets across all income groups (basic, low, middle, and high), with the basic- and low-income groups having the highest weights. The index was established in December 2021 with a base of 100. Compared to the overall ZEBRA Basket Index in our monthly publication, the weekly ZEBRA Grocery Index does not capture durable goods, fuel, utilities, rents, etc. Local goods are produced in Zimbabwe, which may have an import component; imported goods are finished products produced outside of Zimbabwe. Where parallel rates are mentioned, these are based on what we’ve heard in the market.
Disclaimer
All data and information are provided as is for informational purposes only and is not intended for trading, exchange, finance or investment, tax, legal, accounting, or other purposes. This bulletin carries pricing points that are subject to change depending on the suppliers and retailers referenced herein and the authors take no responsibility for any consequences arising from the same. None of the data or information constitutes professional advice, nor any offer, solicitation, recommendation of any kind. The bulletin makes no representation regarding the advisability and suitability of specific informational applications by any end reader/user/consumer. Applicable laws of the jurisdiction of Zimbabwe shall govern and take precedence over the data and information provided herein.