The Reserve Bank of Zimbabwe (RBZ) announced that the price of bread will go down following the talks with an association of bakers.

“Taking into account the submissions by the Bakers Association of Zimbabwe and the need to stabilise the price of bread, the Reserve Bank of Zimbabwe agreed with the bakers association that its members would access their full requirement of foreign exchange through the weekly foreign exchange auctions for the importation of inputs and procurement of fuel for the distribution of bread across the country,” Mangudya said in a statement.

Bakers had recently raised the price of bread from US$1 to an average of US$1.20 in response to rising fuel prices, disruptions to global wheat supply chains caused by the Ukraine war and lack of access to foreign currency to fund imports.

“It is expected that members of the bakers association will review the price of bread downwards. Going forward, the price of bread will be adjusted on account of economic fundamentals that include global price trends of inputs and the movement of the foreign currency exchange rate.” Mangudya said.

Meanwhile, Economic analyst Tinashe Murapata said the announcement by the reserve bank showed the country was moving towards “price controls”.

Governor John Mangudya said bakers had complained over a lack of access to foreign currency to import wheat and procure fuel for deliveries.