Average prices

Average prices declined again in August, taking the index to 97,65, down from 97,95 in July this year, a month-on-month fall of –0,305%. In August last year, the index number was 100,43, so the average price decrease was –2,768%. Last month, the year-on-year decrease was –2,771%. The slight change is accounted for by the extent of the fall in prices between July and August last year being marginally larger at –0,309%. Average prices are now at their lowest level since January 2012. December 2012 = 100 was chosen as the base for this All Items Index.

Only one of the twelve groups showed a slight increase in average prices during August, but three of the twelve showed increases if the year-on-year figures are compared. These figures are shown in the attached basic table. The more detailed table will be sent soon.

Kindest regards,

John  

Povertthy

From: John <JMRobertson@umaxlife.co.zw>
Date: Fri, 03 Jul 2015 17:00:40 +0200
Conversation: "Poverty" Datum Line update
Subject: "Poverty" Datum Line update

An Update of the Poverty Datum Line statistics shows that the average fall in prices matches the fall recorded in the differently constructed Consumer Price Index, the average price levels having fallen by 2,7% between May 2014 and May 2015. However, this analysis shows significant differences between the various centres in the country. Average prices in Harare fell by 6%, but in some centres, the average increased over the year. In  the table below, prices are seen to have increased in Mashonaland Central, Matableland South and Mashonaland East. The steepest fall in prices during the year was in Matabeleland North, where they came down by 8,9%, but prices in that area had been significantly higher than in the rest of the country through the year. On average, in May this year it cost an individual about $20 more than the national average to pay for a month’s basic requirements, but in May 2014, the additional costs for Matableland North residents came to about $28.

The summary table below shows these comparisons, but the full table is attached. In the rows at the bottom of the table I have included the CPI so that it can be compared to the PDL.



I would continue to argue that the use of the word Poverty in the title of this table is incorrect. The exercise makes no claims that individuals on incomes lower than about $100 a month are suffering malnutrition or other poverty-related stresses. If this amount is being earned or received, the figure would place Zimbabwean workers above the one to two dollars a day averages that apply in a great many Third World countries. In Zimbabwe, the problem has been exaggerated by a trades union practice of claiming the Poverty Datum Line to be five times the average usually calculated for an individual. This is to allow for the supposed average of five dependents per worker, but this has been one of the causes of wage levels becoming too high to permit Zimbabwean producers to be competitive against the costs of imports.

I will continue to monitor this series and to send you updates when I can.

Kindest regards,

John

Consume rprices June

Average consumer prices dropped further in June, taking the Consumer Price Index down to 97,985 from the May figure of 98,031. Compared to June 2014, the average prices in June 2015 were 2,81% lower.

Comparing the June 2015 prices with those of a month earlier, Food & Non-alcoholic Beverages decreased by 0,45% and smaller decreases were registered for Household maintenance, Household equipment and Health, Recreation and Restaurant & Hotel charges.

Against the figures for June 2014, the biggest falls to June 2015 were for Communications Equipment, which went down by 13,86%, and Education charges, which decreased by 7,09%.over the year, food prices decreased by 3,32% and the few price increases recorded for the main groups were for less than one percent.

The graph below illustrates the recent trend and the basic table is attached. The more detailed table will be sent soon,

Kindest regards,

John

From John Robertson

The Consumer Price Index moved down in June to 97,985 compared to the Base of 100 for December 2012. As the graph below shows, this was the eighth month in a row that consumer prices fell, and average prices in June were 2,81% lower than they were in June last year and average prices are now lower than they were in February 2012.



The detailed table is attached and it shows that if the June 2015 figures for the 83 listed goods and services are compared with those from a month earlier, the prices of 24 increased, but for 31 items the prices went down and the prices of the remaining 28 remained unchanged.

Comparing the June 2015 figures with those for June 2014, the table shows that 19 items went up in price, but for 58 the prices came down and the balance of six either remained unchanged or returned to the prices charged a year earlier.

While statistics are gathered from all the main urban areas, a high proportion of the records reflect the prices in the retail areas frequented by the bulk of the population in the higher density areas. This might be the main reason why people living in the lower density suburbs will not be able to immediately relate to the claimed price falls shown in the CPI tables.

Kindest regards,

John


------ End of Forwarded Message

Zimbabwe economy

Policymakers and business leaders in Zimbabwe seem to share the opinion that past policies are still appropriate for the New Normal economy of the post-Global Financial Crisis world.

 

Since dollarization, investment has averaged only 17% of GDP. For the economy to grow at the targeted (ZIM-ASSET) 6% to 7% rate, investment of at least 30% of GDP needed.

 

China, the US, the Euro area and many others have to undergo – often painful –rebalancing. Zimbabwe is no exception, especially after the meltdown of the “Lost decade” (1998-2008).

 

For the immediate future the economy will continue in muddle-through mode, as growth will be lack-lustre – 3% to 4%.

 

Financial sector will restructure as banks consolidate, hence fewer banks and asset managers.

 

Read more http://bit.ly/1tqVISg

 

A republication of a presentation by Professor Tony Hawkins, Economist and Professor, University of Zimbabwe.

 

Thought to you by TheBehaviourReport.com

 

 

Zimbabwe will soon run out of money: Baz

 Zimbabwe will soon run out of money: Baz - DailyNews Live

 

HARARE - Bankers Association of Zimbabwe (Baz) has warned that Zimbabwe will soon run out of money to sustain imports.

 

Joseph Mverecha, Agribank divisional director, speaking on behalf of Baz president Sam Malaba at the Gweru Agricultural Show business conference last week, said Zimbabwe's depressed economic performance was ominous.

 

"The trade deficit that we are experiencing, sooner or later, we will run

out of money to finance it," Mverecha said.

 

He said since 2010, Zimbabwe's import bill had ballooned from $1,5 billion to about $6 billion in 2014.

 

"Since dollarisation, our current account has drastically increased and at

some stage we will fail to pay for those imports," Mverecha said. He

predicted that the country would witness a decline in imports soon.

 

The influx of imports into the economy has been met by insignificant

exports which are largely in raw form, hence noncompetitive on the

international market.

 

Imports in Zimbabwe increased to $528,18 million in June of 2014 from

$510 million in May of 2014.

 

Mverecha said Zimbabwe needed fresh money to shore up the economy.

 

"We need fresh capital into the economy," he said.

 

Zimbabwe has failed to attract the much-needed foreign direct investment (FDI) due to a cocktail of government policies hostile to investors, chief among them the Indigenisation and Economic Empowerment Act, which requires foreign firms to cede 51 percent to locals.

 

Targeted sanctions against some political leaders in Zimbabwe were actually hurting ordinary people

In a rare one-on-one stage interview he held with US president Barack Obama, Zimbabwean technology entrepreneur, Takunda Chingonzo, told Obama that the supposedly targeted sanctions against some political leaders in Zimbabwe were actually hurting ordinary people.Chingonzo said technology entrepreneurs looking to get technology or funding from US-based companies often hit a brick wall because of the sanctions."In our work, we got to a point where we needed to import a bit of technology from the United States. And so we were engaging in conversation with these US based businesses, and the response we got time and time again was that unfortunately we cannot do business with you because you are from Zimbabwe. I was shocked. This doesn't make sense," explained Chingonzo to Obama.In response, Obama said that the US is facing the challenge of balancing helping the people of Zimbabwe with what he termed "repeated violation of basic democratic practices and human rights" in the country. Obama agreed with Chingonzo that what was was needed were initiatives that enhance as opposed to retard the progress of the Zimbabwean people.The US president then suggested that projects be explored by Zimbabwean entrepreneurs together with the US to ensure Zimbabweans are not affected.He was adamant, however, that the US is set on sending the strong message about good governance in Zimbabwe.Chingonzo is in the US on the Young African Leaders programme. The founder of wireless internet startup, Saisai, had the one-on-one with Obama on stage yesterday at the US-Africa Leaders Summit in the US. - See more at: http://bulawayo24.com/index-id-business-sc-economy-byo-51797.html#sthash.vjF2Xz5d.dpuf