Economic analysts in Bulawayo have urged the National Competitiveness Commission to monitor and look into the pricing system of basic commodities as the three-tier pricing system is continuing.
The country has been witnessing downward variations on month to month inflation rate in February which was 1.67 percent as compared to the January rate of 10.75 percent.
However, some retailers and wholesalers continue to charge exorbitant prices on basic commodities such as cooking oil, meal-mealie and soap.
Economic analysts Mr Dumisani Ncube and Morris Mpala say following the announcement of the new monetary policy which gave a new reference exchange rate of US$1 to 2.5 RTGS$, a number of retailers and wholesalers have taken advantage of the situation and started pricing basic commodities at the alternative market exchange rates of around US$1 to 4 RTGS$.
The monetary policy is set to contain inflationary pressures, and the National Competitiveness Commission must reign in errant wholesalers and retailers who are now undermining overall confidence in the market.
“People are not pricing based on actual cost. If people were pricing on cost they are incurring, we know that many costs will remain unchanged, the cost of utilities, electricity, local authority cost and labour cost have remained stagnant.”
“We have expected that when people are pricing would have a blended price effecting the ratio of imported goods and those that reflect source input like labour. There is some profiteering if certain costs have remained stagnant. There is no reflection of costs,” said Mr Sibanda.
The country has seen a downward movement on the month to month inflation rate as from October 2018 which was pegged at 16. 4 percent and a gradual decrease in January of 10.8 percent and in February it dropped to 1.67 percent.