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Oliver Kazunga, Senior Business Reporter
THE cost of living declined by 0.92 percent last month to $585,07 due to sales promotions by some supermarkets and the confidence brought by the introduction of bond notes.

According to a survey conducted by the Consumer Council of Zimbabwe (CCZ) based on an urban low-income earner for a family of six, the cost of living decreased from $590,52 in January 2017.

“The cost of living as measured by the CCZ’s low income urban earner monthly basket for a family of six decreased from the end of January figure of $590,52 to $585,07 by end of February 2017 showing a decrease of $5,45.

“As CCZ we assume that the decrease in prices has been caused by promotions on various commodities in some supermarkets. The change noticed can be a sign that the nation is now confident and has adapted to the use of bond notes,” said the consumer representative body.

The Reserve Bank of Zimbabwe introduced bond notes in November last year to incentivise local exporters through a five percent export incentive scheme.

CCZ indicated that the food basket decreased by $4,12 from $144,36 by end of January to $140,24 last month. The price of detergents also went down.

“The price of detergents decreased by $1,33 or 10,94 percent from $12,16 to $10,83.”

Decreases were recorded in products that include margarine, mealie meal, tea leaves, milk and cooking oil.

“Decreases were recorded in margarine by 11 cents from $1,15 to $1,04, mealie meal by 55 cents from $12,20 to $11,65 . . . tea leaves by 10 cents from $1,79 to $1,69, milk by two cents from 59 cents to 57 cents, cooking oil by four cents from $1,49 to $1,45.”

The consumer watchdog said price increases were recorded in products such as bread whose price went up by five cents from 75 cents to 80 cents, flour by nine cents from $1,87 to $1,96, salt by two cents from 28 cents to 30 cents.

CCZ said it continues to encourage consumers to shop conscientiously and to always buy certified products.

@okazunga