THE Consumer Council of Zimbabwe (CCZ) has predicted that prices will remain stable during the first quarter of 2025, owing to the tight monetary and fiscal policy measures instituted by the authorities, businessdigest reports.
The latter part of 2024 was marked by significant inflationary pressures.
The country witnessed a sharp increase in month-on-month inflation, with prices rising by 37,2% in local currency terms in October, following the devaluation of the Zimbabwe Gold (ZiG) currency by 43% in September.Inflationary pressures were compounded by external factors such as rising global commodity prices and the volatility of local currency exchange rates.
The ripple effects of these changes were felt across various sectors, including food, fuel, and essential services, leading to a significant increase in the cost of living for ordinary Zimbabweans.
To address these concerns, Zimbabwe’s central bank implemented various monetary interventions, including maintaining the policy interest rate at 35%. These measures aimed at curbing inflation and restoring stability in the domestic economy.
By November, the month-on-month inflation rate had slowed to 11,7%, offering some relief to consumers.
The CCZ's monthly family basket analysis for this period showed that while the pricing of goods and services remained stable in US dollar terms, fluctuations were noted in the formal market, particularly concerning gold pricing.
Looking ahead to 2025, the CCZ remained optimistic about price stability in the first quarter, largely due to the continuation of tight monetary and fiscal policies.
- Mthuli Ncube abandons struggling consumers
- Government moves to cushion pensioners
- Village Rhapsody: Zanu PF must commit to peaceful transition in 2023
- Could genomics bring answers to the Siyachitema Covid-19 bloodbath?
Keep Reading
"We anticipate the stability of prices to continue during the first quarter of 2025, owing to the tight monetary and fiscal policy measures instituted by the authorities,” CCZ chief executive officer Rosemary Mpofu told businessdigest.
Additionally, favourable weather forecasts predicting above-normal rainfall for the 2024/2025 farming season are expected to support agricultural output.
Despite the late onset of rains, the forecasted rainfall is expected to improve the production of staple crops, potentially easing food prices and providing relief to consumers, particularly in rural areas.
“The weather forecast for the 2024/2025 season has continued to depict an above-normal rainfall pattern, despite the late start of the rains. As consumers, we continue to believe in our weather experts and urge consumers to pay attention to the advice given, especially that of growing small grains in specific regions," she added.
Moreover, Mpofu said, CCZ continued to engage in efforts to improve consumer welfare beyond price stability.
As part of its broader consumer advocacy initiatives, the CCZ is looking at promoting healthy living among consumers this year.
While the reduction in sugar tax has provided some financial relief to businesses and consumers, CCZ has expressed concern about the long-term health consequences of increased sugar consumption. The council encouraged businesses to embrace healthier alternatives and promote products that align with dietary guidelines.
“The sugar tax was reduced, and it is to the advantage of the business sector that needs their profits to grow. However, at the same time, consumers should actually be reducing their sugar intake because our health delivery system is struggling to reduce non-communicable diseases (NCDs), which are mainly caused by too much sugar, too much salt, and too much oil,” Mpofu added.
The council's focus on promoting healthy eating is coupled with the introduction of a new Fast Foods Tax, which was implemented at the beginning of 2025. The new tax aims to generate revenue while also encouraging healthier eating habits among consumers. This initiative comes as part of a broader effort to address the rise in non-communicable diseases, which have become a major concern for Zimbabwe's health system.
“The Fast Foods Tax, besides just being a revenue generation tool, will also promote healthy eating lifestyles, especially in the wake of increases in NCDs that are putting a strain on the health delivery sector,” she said.
Looking ahead, the council plans to increase consumer education through its partnership with the University of Zimbabwe to offer certified training to advocacy bodies, businesses, and consumers.
This training aims to promote better consumer practices and ensure a better understanding of consumer rights, which is critical to the future economic well-being of Zimbabweans.
