Zimbabwe’s government has allowed bakers to increase the price of a loaf of bread by more than 200%, as shortages persist across the country, an official of the bakers’ association said on Sunday.
A senior manager from one of the country’s leading bakeries, Lobels, who demanded anonymity, said that the government approved the hikes for bakers late on Friday.
He was confirming a report by the state-run Sunday Mail newspaper which quoted a letter from the National Incomes and Pricing Commission (NIPC) to bakers, saying that it has approved a hike in the price of a standard loaf of bread from Z$30 000 ($1) to Z$100 000 ($3,30).
”The National Incomes and Pricing Commission has given the go-ahead to the bakers’ association to sell bread at the new approved prices,” read part of the letter quoted by the newspaper.
The National Bakers’ Assocation chairperson, Vincent Mangoma, told the newspaper that the approved price ”relatively differed” from what the association had proposed and called on the government to supply subsidised fuel to bakers to bring down escalating production costs.
On Friday, the Zimbabwean government had authorised new increases in the prices of basic foodstuffs in a bid to ease widespread shortages that followed an order for retailers to halve their tariffs.
The NIPC announced it had approved rises of between 50% and 200% for a range of staples including a bag of sugar which will now cost Z$255 232 up from Z$84 000.
Bread racks in most shops have been bare while in some cases deliveries were erratic after President Robert Mugabe’s government launched Operation Dzikisa Mutengo (Reduce Prices) in June, forcing shops and businesses to halve their prices.
Mugabe (83) accused businesses of colluding with his foes in the West to push prices beyond the reach of many and ignite a popular revolt against his 27-year rule.
The government, which is trying to rein in an annual inflation rate which currently stands at more than 6 500%, approved other rises last week. – Sapa-AFP