Bread price triples in Zimbabwe :: Namibia Internet Gateway cc ::

Articles: Bread price triples in Zimbabwe

Posted by admin on Tuesday, December 26, 2006 - 04:52 PM

22/12/2006 17:53 - (SA)

Harare - The price of bread has nearly tripled in Zimbabwe after the government caved in to pressure from bakers demanding a more realistic selling price.

Industry minister Obert Mpofu said in a government notice that the new price for a loaf would be 825 Zimbabwean dollars (about R24), up from 295 Zimbabwean dollars. "The minister of industry and international trade has set 825 dollars as the new retail price of bread while the producer price of bread has been set at 725 dollars," reported the Zimbabwe Broadcasting Corporation on Friday. Bread had almost disappeared from shop shelves after bakers said they could not afford to sell it at a loss. They said they would need at least 700 dollars a loaf to break even. The government accused bakers of withholding bread to force a price hike. Two bakery executives were recently sentenced to short jail terms for hiking the bread price without permission. The government controls the prices of bread, flour and milk. The price hike was expected to further dampen year-end holidays in Zimbabwe. Most of the country's 11.6 million people are reeling under inflation of close to 1 100% and near-daily price increases in the shops.

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