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Sunday, April 21, 2024
HomeNewsBread Price Increase Looms As Flour Price Soars

Bread Price Increase Looms As Flour Price Soars

The price of bread could rise in the next few days after the Grain Millers Association of Zimbabwe (GMAZ) announced an increase in the price of bread flour owing to operational costs.

Rising global demand owing to the Russia-Ukraine war has sent the price of wheat up in recent times including fuel prices with retailers pegging bread prices above US$1.

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In a statement, GMAZ corporate affairs manager Andrew Kunambura said rising inflationary winds and an increase in interest rates had an impact on the adjustments.

“The milling industry continues to face serious inflationary headwinds which include the finance cost occasioned by the increase of interest rates from 100% to 200%, The increase of the local wheat price from GMB to millers by 08% and the interbank exchange rate has moved up by 5, 5% from US$1: ZW$362, 6 to US$1: ZW$382, 5. The currency devaluation has severely impacted on the general operation cost and there was also an upward review of the prices of fuel,” said Kunambura

He said the collective impact of these movements will see a ten percent increase in the price of flour to bakers but said millers and bakers will deliberate on prices.

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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,” said Kunambura

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