Sugar producer, Tongaat Hulett Zimbabwe has once again raised the price of 2kg brown sugar by 30 percent, adding more pressure onto consumers already grappling with soaring inflation and static income. The last increase in the commodity’s price was on 15 June 2020.
The prices of basic commodities have been rising rapidly in the country over the past few months as shortages of foreign currency has deepened. Price determination in the economy by businesses is being established on the basis of expectations about the depreciation of the exchange rate and prices that will exist in the future.
ording to a new price table from the sugar producer, a 1kg packet of brown sugar now costs ZWL$91.29 from ZWL$70.22 while a 2kg packet is now selling at ZWL$182.58 from ZWL$140.45. Also, a 5kg is now going for ZWL$456.46 and 10kg pegged at ZWL$912.91.
On the other hand, the pricing table shows that a 1kg packet of white sugar increased by 30 percent to ZWL$96.11 from ZWL$73.93. A 2kg packet surged by 30 percent to ZWL$192.23 from ZWL$147.86 previously.</div><div><br>A 5kg and 10kg packet is now selling at ZWL$480.56 and ZWL$961.13 respectively.
Although, the central bank fixed the interbank exchange rate at $25 to US$1 for the duration of the Covid-19 lockdown, street rates have breached the 90x mark. The southern African nation’s annual inflation reached 785.55 percent in May after gaining 19.98 percentage points from the previous month.
During the lockdown period, prices of goods and services have risen by over 500% while the Poverty Datum Line is way above ZWL$8 000. Most goods and services now require payment in United States dollar as the local currency lost its value.