Zimbabwe Bakers Association request price increase

By Lance Guma

08 December 2006

Just a day after we covered the 60 percent increase in the cost of public transport, the Zimbabwe Bakers Association confirmed that they have put in a request to government for them to be able to increase the price of bread by 140 percent. If this increase is approved bread will shoot up from the current Z$295 to Z$700. To make matters worse, the association says more increases might be on the way if the price of flour goes up again.

Two bakery executives were jailed last week for increasing the price of bread without government approval. Although they were later granted bail the case highlighted the desperate manner in which the regime is trying to fight the symptoms of an economic meltdown rather than the causes. Economists blame a violent land grab for destroying agriculture. The loss of foreign currency revenue that resulted created shortages which have had a ripple effect on other sectors of the economy. Corruption and mismanagement have also taken their toll on the economy.

Soon after the budget statement released by the finance minister last week the price of several basic commodities went up. Soft drinks rose from Z$500 to Z$800, beer Z$800 to Z$1100 and milk went up from Z$786 to Z$1129 per litre. The increases also included items like biscuits, sweets, orange juice, and baby foods.