A standard loaf of bread now costs US$2, following an increase in the price of flour by 17%, 7 days ago.
The official exchange rate is at US$1:ZW150 and this means that Zimbabwe’s loaf of bread is currently the world’s most expensive one.
” The bread price increases are not justified. AS retailers, at most we only put a 10% mark up on the bread price. In essence, retailers do not have control over the price of bread. It is unfortunate that retailers however suffer the blame of unjustified bread price hikes from consumers when manufacturers are the ones who peg the prices,” Denford Mutashu the confederation of Zimbabwe retailers President said.
Most retailers are selling bread at US$1 as they are using the parallel marked market exchange rate of $US1:ZW 350. He also added that the price is now unaffordable for many ordinary citizens.
” There is no doubt that the price is unaffordable to many ordinary citizens. What we advise retailers to do is to focus on the production of in-store bread which is respectively cheaper than bread from bigger bakeries” He added.
The Grain Millers Association of Zimbabwe (GMAZ) President Tafadzwa Musarara recently warned of possible bread shortages following a move by the Ukraine army to suspend the loading of shipping vessels to South East Asia, the Middle East and Africa. The country was consuming 16 000 tons of bread flour per month and approximately 1,2 million loaves of bread per day.