By LORRAINE WOHI
THE current price increases of goods and services in the economy is due to the cost build of goods and services businesses are trying to make up for.
ICCC Commissioner, Paulus Ain said the country relies mainly on imported goods and services and therefore the consequent increase in demand and low supply has caused the cost build up.
“What you are seeing on the shelf is the money business houses are spending to bring these goods onto the shelf,” he said.
“Much of what we are experiencing domestically in our economy is the cause of imported inflation.
“The cost that has been passed on to us and we are taking a cost that has abroad into our economy and is now being put on the shelves for us to pay.”
He also mentioned other cause of the cost build up which include; freight cost and the exchange rate.
“The other one is the global fuel prices and the oil prices for the international shipping cost that has cause the price to increase whereas inflation is,” Ain said.
We have our domestic cost that needs to be reflected as well including the the cost of the salary, security, rentals amongst others.”
Also adding to the cost build up is the crude oil price.
Ain said Ukraine and Russia economy mainly rely on the crude oil price and this has consequently caused the price increase.
He said there was nothing ICCC could do to stop this increase because these are the global fuel prices that have been passed on to us.
He said what ICCC was doing now is telling businesses not to increase the cost.
