A bread price increase is looming as the Grain Millers Association (GMAZ) has said the price of bread flour has gone up by an aggregate of 10%. In a statement seen by Pindula News, millers said the increase takes into account exchange rate depreciation, and fuel price increase among others. We present the statement below:
PRESS STATEMENT ON THE ADJUSTMENT OF THE PRICE OF BREAD FLOUR
The milling industry continues to face serious inflationary headwinds which include:
1. The finance cost occasioned by the increase of interest rates from100% to 200% 2. The increase of the local wheat price from GMB to millers by 08%. 3. The interbank exchange rate has moved up by 5,5% from US$1: ZW$362,6 to US$1: ZW$382,5. 4. The currency devaluation has severely impacted on the general operation cost. 5. There was also an upward review of the prices of fuel.
The aggregate impact of these movements will be around 10% increase in the price of flour to bakers. However, individual millers and bakers will continue to deliberate on prices, leveraging on quantity discounts, payment terms and any other considerations.
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Prices of bread have been going up recently with bakers citing depletion of wheat reserves in the country and an increase in prices of wheat imported.
The bread price, at about US$1.30, is already too high for some members of the public. An increase in prices will only make matters worse.