By- Continued increase of basic commodities pushes consumers to engage in panic buying as they fear shortages of these essential commodities.
According to NewsDay this is emptying shop shelves with such commodities ending up on the black market while consumers keep others in homes.
The Consumer Council of Zimbabwe (CCZ) conducted a survey recently and observed that cooking oil was among the affected commodities. CCZ spokesperson Chris Kamba told NewsDay Business:
Some people are now hoarding basic commodities in anticipation of a looming food crisis.
Consumers are panicking over the parallel market rate which continues to change on a daily basis.
A recent survey by CCZ revealed that the most affected product is cooking oil, which is going for $2 100 (about US$4 at the parallel market rate) in the big retail shops, against $5,50 on the black market. So, some people are resorting to hoarding the product and resell at the informal market.
The development reminds of the hoarding spree that was witnessed in 2008 when the country experienced another hyperinflation.
The recent wave of market panic has been sparked by a deadly erosion of the Zimbabwe dollar’s buying power.
The currency has lost over 30% of its value against the United States dollar since January.