Bread price must go down: RBZ

THE Reserve Bank of Zimbabwe (RBZ) yesterday directed that bread prices should be reviewed downwards from $640 in line with the official foreign currency exchange rate and global trends.

This follows a meeting earlier yesterday between the RBZ and the National Bakers Association of Zimbabwe to discuss bread prices and challenges of the cost of production they are facing.

During the meeting, the RBZ agreed to avail foreign currency to bakers on a weekly basis.

Bread currently costs between $540 and $640 for a standard loaf, while super white bread costs
$1 000.

Alternatively, it is pegged at between US$1,40 and US$1,70 at some retail outlets.

The price of bread has triggered a public outcry, with millers attributing the price hike to erratic wheat supplies due to the Russia-Ukraine war.

“Taking into account the submissions by the bakers association and the need to stabilise the price of bread, the bank agreed with the bakers association that its members would access their full requirements of foreign exchange through the weekly foreign exchange auctions for importation of inputs and procurement of fuel for the distribution of bread across the country,” a statement from the central bank read.

“In view of the positive engagement with the bakers association, 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 the global price trends on inputs and the movement of the foreign exchange rate.”-nesday