LOBELS Holdings has hiked the price of bread by 100% from $1,10 per loaf to $2,20 with effect from today, citing the constant rise in the cost of inputs as the reason for the hike.
By Everson Mushava
The announcement was made in a letter from Lobels’ regional sales manager Zenzo Mhlanga to OK Zimbabwe’s operations manager and bakeries dated October 26. The wholesale price for the standard prime loaf, standard hi-fibre, standard whole wheat and standard whole meal has been pegged at $2, with a recommended retail price of $2,20.
“Please, be advised that the price of Lobels bread is going up with effect from October 27, 2018,” the letter read.
“This has been necessitated by the constant rise in the cost of inputs. May you please effect the necessary adjustments within your stores.”
Reports say some stakeholders in the baking industry have been holding consultations with a view to hike the price of bread to match the parallel market value of the United States dollars which is now between $2.80 and $3.20. The price of bread rose from $0,90 to $1,10 last month when prices of commodities started skyrocketing.
A Transitional Stabilisation Programme by Finance minister Mthuli Ncube, that was released concurrently with the Reserve Bank of Zimbabwe mid-term monetary statement, triggered price hikes due to a shortage of foreign currency. National Bakers’ Association of Zimbabwe president Ngoni Mazango yesterday refused to comment on the price hike.
“I know what you want to ask, I will not comment. I don’t have a comment,” Mazango said.
President Emmerson Mnangagwa on Thursday blamed the price hikes on panic and speculative buying triggered by social media and threatened to clamp down on what he described as economic saboteurs.