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Oliver Kazunga, Senior Business Reporter
THE wholesale and retail price of bread has fallen by 16 percent following a reduction in the price of flour in the market from $3 150 per 50kg bag to $2 136.

Grain Millers Association of Zimbabwe chairman, Mr Tafadzwa Musarara, said the price reduction, which was with effect from last Friday, will now be guided by the foreign currency auction.

“I am pleased to advice that the cost of bread flour has fallen with effect from Friday 3 July 2020.

“The price has fallen from $3 150 per 50 kilogramme bag to $2 136 per 50kg bag of bread flour.

“Consequently the bakers have committed on the back of this price to reduce the price of standard loaf with effect from Friday 3 July 2020. The wholesale price is now $59 and retail price $66,” he said.

“From now on, our prices will be guided by foreign currency auction outcomes.”

In Bulawayo, informal traders and retailers were selling a standard loaf at $55 and $65 respectively. Before the latest price reduction, the informal sector was selling a loaf at $70 while the retailers sold at $75.

The weekly foreign currency auction trading system, which is conducted every Tuesday was introduced by the Reserve Bank of Zimbabwe three weeks ago to replace the fixed exchange rate of US$1:ZWL$25.

The fixed exchange rate came into effect at the end of March 2020 as part of measues to stabilise prices of goods on the market following the outbreak of Covid-19 pandemic.

Last week, the exchange rate moved to US$1: ZWL$63,7. — @okazunga