The price of bread is likely to go up following a rise in flour prices by 10% yesterday.
A rise in flour price came after the Grain Marketing Board increased its wheat prices to millers by 8% from $239 360 to $258 416 per tonne.
Grain Millers Association of Zimbabwe spokesperson Andrew Kunambura said the decision was made after noting serious inflationary headwinds in the industry.
“The milling industry continues to face serious inflationary headwinds, which include the finance cost occasioned by the increase in interest rates from 100% to 200%, and the increase in the local wheat price from GMB to millers by 8%,” Kunambura said.
However, National Bakers Association of Zimbabwe president Dennis Wala said the move by GMAZ would affect the whole bread production value chain.
“We are in a value chain and one of the suppliers in the value chain highlights that it has reviewed their prices, which means it also affects our cost drivers in terms of the final product which is bread,” Wala said.
Meanwhile, The increase in the price of flour comes barely a month after Finance and Economic Development minister Mthuli Ncube announced a cocktail of measures meant to stem the rising inflation and restore confidence in the economy.
