In response to economic pressures, the price of bread in Zimbabwe has gone up by 5%.
Now retailing at ZWL$94 per loaf, the price increase coincides with the reopening of schools after a two and half month national lockdown, and comes at a time government is deadlocked in salary negotiations with its restive employees – a negotiation with potential inflationary implications.
Zimbabwe has a history of economic policy intrusions. Deviating from this past, the Reserve Bank of Zimbabwe is projecting the annual inflation to be lower than 10% this year, from 363% recorded in January.
Leveraging on positive agricultural prospects and dissipating global uncertainties in the wake of covid vaccination rollouts, Zimbabwe is targeting a 7.4% economic growth in 2021. With talks of another national lockdown gathering momentum in Zimbabwe after experiencing a surge in new coronavirus cases and deaths recently, and on the back of increasing prices of basic commodities, a sharp rise in utility bills, and recurrent fuel price increases, Zimbabwe’s economy is still standing on shifting sands.