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By Golden Sibanda
THE cost of the food basket for a low-income urban family of six rose 5 percent to US$152 in January after prices succumbed to recent increases in the cost of fuel.
The Consumer Council of Zimbabwe last week said this was a result of price rises in margarine, fresh milk, cooking oil, flour and meat.
Rice, onions, cabbage, mealie-meal, bath soap, washing bars and washing powder prices also rose. But those for other items in the basket were unchanged.
The cost of food rose as the prices of maize meal went up by US84c, rice US55c, washing powder US35c, meat US33c, tomatoes US26c and cooking oil US31c.
While the cost of most items in the consumer basket remained unchanged the prices of selected items pushed the overall cost of living by 2 percent in January.
CCZ said this could be linked to the firming  of the rand and a rise in fuel prices, which have gone up by US25c to US37c. But it feared this could also be due to the traditional practice of retailers raising prices in January.
“CCZ is concerned that the increase in the food basket may be attributable to the traditional behaviour of supermarkets to increase prices in anticipation that workers would receive salary increments (in January),” said            CCZ.
The price increases came despite the fact most retailers have not responded positively to calls for them to  stock up with sufficient change for customers.
The council said the cost of the basket for transport, rent, water, electricity, health, education, clothing and footwear remained unchanged in January at US$344.
As such, the overall cost of the consumer basket moved from US$499,95 in December to US$509,17 in January.
The cost of imported fuel and the exchange rate movements of the rand affect prices in Zimbabwe, which imports 40 percent of its basic goods from South               Africa.
Fuel prices started rising last November after the onset of an abnormally harsh winter period in the northern hemisphere, raising demand for fuel and reducing supplies to Africa.
This forced local stocks to drop to critical levels.
Prices of fuel rose significantly after production dipped in major oil-producing countries, creating shortages in non-fuel producing nations such as Zimbabwe.
A strengthening rand also put pressure on products, especially those imported from South Africa, where retailers buy 40 percent of the imported goods.
When the rand/US dollar exchange rate appreciates it means local importers will need more of the rand to buy the same quantity of goods.
Fears abound that the rise in the price of goods may stoke inflation, which is undesirable, especially in an economy using the US dollar as the main currency.
A continuous increase in prices may exert pressure on wage negotiations.
CCZ also it was concerned over the huge bills consumers continue to receive from councils, which are reportedly not based on actual meter readings.
The consumer advocacy body was also disturbed by the Harare City Council’s plans to increase water charges by 40 percent in its 2011 budget.
CCZ urged relevant ministries to urgently address the concerns raised by consumers.