Bread prices double

By Lance Guma
22 September 2005

The price of bread has more than doubled in the last two weeks with some bakers increasing their prices four-fold. While government gazetted Z$7,500 as the official price most businesses are selling it for between Z$13,000 and Z$32,000 a loaf.

Economic analyst Eddie Cross says the input costs for bakers have dramatically shot up and this has necessitated a price review. The price of fats, yeast, flour, packaging and transport have all gone up sharply in the months of August and September and this has to be accommodated in the cost structures.

Another added burden is securing diesel and paraffin, which are primarily used to run the ovens for baking bread. Black market prices were forcing the bakers to look at ways of recouping their expenses. This is also why they are shying away from baking ordinary bread and making fancy loaves, which can sell above the gazetted prices. Zimbabweans will now be familiar with names like Swedish loaf, Health bread and Super White.

Government has also not been able to successfully prosecute violators of price controls and hence most businesses are carrying on with their own price regime. The country has witnessed price increases in almost all sectors. Fuel increases led to commuter fares doubling while a collapsing dollar, aided by inflation, raised prices for most general goods, especially imports.