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THE. Reserve Bank of Zimbabwe governor John Mangudya has been forced to hold a meeting with bakers over the price of bread as the government was rocked by public health workers strike on Monday.
Bread prices have recently alarmingly spiked to levels beyond the reach of many citizens along with the cost of other basic commodity.
A loaf of bread currently costs ZW$629 which is equivalent to US$1,85 in line with the official exchange rate.
Players in the baking sector justified the increases on a number of factors such as input costs involved in the sourcing of raw materials and delivery of bread.
But in a statement Monday, Reserve Bank of Zimbabwe governor, John Mangudya announced that he had a successful meeting with the sector’s players which will see the commodity’s price reducing going forward.
He said the meeting took into account the submissions by the baker’s association and the need to stabilise bread price and an agreement was reached for baker’s association to access the full requirements of foreign exchange through the weekly auctions for importation of inputs and procurement of fuel for the distribution of bread across the country.
“In view of the positive engagement with the baker’s association, it is expected that members of the association will review the price of bread downwards.
Going forward the price of bread will be reviewed downwards in line with economic fundamentals that include global price trends of inputs and the movement of foreign currency exchange rate.
However, the development comes after prices of other commodities continue to go beyond the reach of many citizens whose salaries have not kept pace with inflationary trends.
The country is also not managing to tap into its agriculture potential to create enough raw materials like grains as confirmed officially that local wheat production is only enough to cater for less than four months a year.
The Ukraine/Russia war disturbances have also frustrated efforts to stabilise the decades long troubled economy leaving authorities with no option except to pass down the effects of fuel prices to consumers.
Source : AllAfrica