/ 6 June 2006

Zim bread price goes up, again

The price of bread in Zimbabwe has gone up from Z$85 000 (84 US cents) to Z$130 000 ($1,28) for a standard loaf, with bakeries blaming the increase on the unavailability of flour and the rise in fuel prices, the state-owned Herald newspaper reported on Tuesday.

“From last week, most bakeries and shops have been selling a standard loaf of bread for Z$130 000 while super white bread is now going for Z$190 000 ($1,87). The rise in input costs has also seen an increase in the prices of all confectionery,” the newspaper said.

Zimbabwe is said to be short of flour, which bakers have resorted to importing at considerably high cost. The situation has also been exacerbated by the recent increase in the price of fuel from Z$120 000 ($1,18) a litre to around Z$300 000 ($2,96) the paper added.

Bakers’ Association of Zimbabwe chairperson Burombo Mudumo was quoted as saying that imported flour costs double the price charged by local millers — bakers had no option but to increase the price of bread to remain viable.

“A tonne of imported flour costs Z$120-million while locally it costs Z$50-million (49 US cents).

Therefore, as bakers we have to increase the price of bread to save the industry from collapsing,” said Mudumo who asked the government to speed up the establishment of the price monitoring commission so that it could gazette the price of bread rather than resorting to imposing price controls.

Mudomo said under the country’s hyperinflationary environment, prices of goods were constantly rising and bread was “no exception”.

“The price of bread rose from Z$45 000 [44 US cents] to Z$60 000 [59 US cents] before settling at Z$85 000 in three months. Inflation, which is currently pegged at 1 042%, has contributed significantly to the constant rise in the prices of basic commodities,” the Herald reported. – AFP