Despite the government’s claims of exchange rate stability and moderating inflation, opposition MPs argue that basic commodities remain stubbornly expensive, with the family shopping basket rising to US$616 in March, well beyond the reach of many households.
This disconnect between improving macroeconomic indicators and the lived realities of ordinary Zimbabweans came under sharp scrutiny in Parliament recently, as legislators questioned why economic stability has yet to translate into lower living costs.
The debate centred on whether the government’s reported gains in stabilising inflation and the exchange rate are reflected in the prices consumers pay for food, transport, medicine and other essential goods.
Raising the issue in the National Assembly, opposition legislator Maureen Kademaunga challenged the government to explain why many Zimbabweans continue to struggle despite repeated assurances that the economy is on a stable footing.
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“Despite reported macroeconomic gains, including exchange rate stability and moderating inflation, the cost of basic commodities remains beyond the reach of many Zimbabweans, with the family basket continuing to rise. It was revised up to USD616, or ZiG20 450 in March,” Kademaunga said.
She asked what policy measures the government was implementing to make sure macroeconomic gains translated into “lower prices for basic commodities, improved purchasing power and a meaningful reduction in the cost of living for ordinary citizens.”
“Despite these indicators of significant macroeconomic gains, it has not translated to the shopping basket. What policy measures is the Ministry taking to make sure that it cascades to the shopping basket?” she asked.
Kademaunga echoed concerns frequently raised by consumers that, although inflation has eased markedly from previous highs, household budgets remain under severe strain.
Opposition legislators also argued that stable inflation figures offer little comfort when wages continue to lag behind the cost of living and essential goods remain unaffordable.
Responding on behalf of the Government, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube rejected the suggestion that prices continue to rise at the pace suggested by the opposition, insisting official inflation figures tell a different story.
“Let us go through the numbers,” he said.
“If you look at month-on-month inflation in ZiG or in USD, it is about 0.1% change from month-to-month. If you analyse that or take the year-on-year inflation, the ZiG year-on-year inflation is 3.2% and the USD year-on-year inflation is 3.1%.”
Prof Ncube argued if the cost of living were rising as rapidly as claimed, inflation figures would be significantly higher.
“If the cost of the basket was rising month-to-month, that figure should be a lot higher than the 0.1%. I am not sure whether the assertion that the Member of Parliament is putting across is supported by the numbers. The numbers tell a different story,” said the finance minister.
While acknowledging that inflation can vary across regions and from month to month, Prof Ncube maintained national data did not support claims of widespread price increases.
“… of course, we understand that inflation varies from city to city and it varies from region to region, even on a month-by-month basis… on an average annual basis, the assertion is not supported by the numbers on inflation,” he said.
However, opposition legislators argued official inflation measurements fail to capture the day-to-day financial pressures confronting households.
MP Mutsa Murombedzi added that consumers continue to experience frequent increases in the prices of everyday necessities despite low official inflation figures.
“While the Hon. Minister has cited monthly inflation figures, households are experiencing daily price shocks. Bread, transport and medicine costs are rising faster than the official numbers that he has told us here,” Murombedzi said.
She questioned how the government verifies the accuracy of its inflation statistics and whether official data adequately reflects the hardships facing vulnerable families.
“What mechanism exists to verify the accuracy of these inflation statistics and how is the Minister ensuring that vulnerable households are not left unprotected by the data that masks their suffering?” she asked.
In response, Prof Ncube acknowledged external factors continue to exert pressure on prices but said the government had opted for targeted interventions rather than broad market controls.
He identified global fuel prices as the biggest source of inflationary pressure, citing volatility in Brent crude oil prices driven by conflict in the Middle East, including the Iran crisis and earlier disruptions linked to the war in Ukraine.
“Let us turn to the biggest source of potential price shocks in the economy. It is the fuel sector,” said the minister.
To cushion consumers, he said the government has adjusted fuel taxes and levies to limit increases in pump prices.
“The one measure we have been taking regarding that specific shock is to continue to adjust the various levies and taxes on fuel in a manner that would then cap the potential increase in the prices,” Prof Ncube said.
“We had to apply about seven cents from the levies and taxes to cushion citizens so that the price of diesel and the price of petrol do not go above USD2.”
The minister said the government deliberately keeps diesel slightly cheaper because it is critical to commerce and production across the economy.
However, he stressed that beyond fuel, the government would not return to widespread subsidies or price controls.
“When it comes to other prices across the economy, we do not really subsidise anything because subsidies ought to be targeted. You ought to know who is affected. They ought to be targeted and they ought to be budgeted for. That is our new principle of dealing with subsidies,” Prof Ncube said.
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