BAKERS have increased the price of bread for the first time this year by about 17 percent from $18 to $21 for a standard loaf citing increased production costs and challenges in procurement of flour.

The increase came into effect over the weekend and by yesterday most shops had adjusted to the new price.

A snap survey by Business Chronicle in Bulawayo revealed that retailers — Greens, OK, TM Pick n Pay, Oceans, Choppies and Zapalala — had already switched to the new price. Brands such as Lobels, Baker’s Inn, Proton and Oceans are being sold for between $20 and $21.

National Bakers Association of Zimbabwe president, Mr Dennis Wallah, attributed the increase in the price of bread to the challenges regarding the flour subsidy as well as escalating costs linked to foreign currency shortages.

“The price of bread has been stable from November to date. We don’t have subsidised flour available hence the market forces are now at play,” he said.

Mr Wallah said because most of the raw materials are imported, changes in the exchange rate also affect the production costs and this had forced bakers to adjust prices.

Consumer Rights Association spokesperson, Mr Effie Ncube, said the latest increase means that the price of bread which is a basic commodity, is now beyond the reach of many families.-state media