Bakers cut price of bread by 10 percent

Bakers cut price of bread by 10 percent

HARARE, March 18 (The Source) – The price of bread is expected to go down 10 percent by Friday and is likely to fall further in the coming months, tracking international trends, an official has said.

Since the adoption of the multi currency regime in 2009,  a standard loaf of bread has been selling at $1 owing to the unavailability of smaller denominations for change.

The central bank has since introduced coins in denominations of one, five, 10 and 25 cents valued at par with US cents to address the price distortions.

“We met with representatives from several business associations including bakers and retailers and agreed that the rounding up of retail prices of bread to $1, 00 was no longer fair and necessary in light of the introduction of bond coins by the Reserve Bank of Zimbabwe,” Grain Millers Association of Zimbabwe president, Tafadzwa Musarara on Wednesday told a press conference.

“Retailers may apply mark ups of up to 10 percent on bread prices and the varying prices of bread from different bakeries must be allowed to reflect on the shelves by way of different retail prices.”

Comparatively, in South Africa, the price of a standard loaf averages 70 cents.

Several bakers and retailers attended the press briefing.