(Bloomberg) -- Zimbabwean baking companies increased the price of bread by 39%, a day after the government hiked the cost of wheat by a similar margin.
A loaf of bread now costs Z$9.45 (81 U.S. cents), compared with Z$6.80 before, Dennis Wallah, president of the National Bakers Association of Zimbabwe, said in by phone Tuesday from the capital, Harare. The state-run Grain Millers Association of Zimbabwe on Monday hiked wheat prices to Z$2,200 from Z$1,600.
Other input costs are also increasing, Wallah said.
“Everything else in terms of the cost of production has been going up; fuel and electricity,” he said. “The amount of diesel we are using has also gone up and this contributes to the cost of a loaf.”
Read a related article about Zimbabwe's surging inflation rate
To contact the reporter on this story: Ray Ndlovu in Johannesburg at rndlovu1@bloomberg.net
To contact the editors responsible for this story: Gordon Bell at gbell16@bloomberg.net, Paul Richardson, Hilton Shone
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