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Lobels Bulawayo branch manager Dumisani Mhlanga stresses a point to the Reserve Bank governor John Mangudya (left) during a tour of Lobels Bread plant recently

THE price of bread is expected to go down by 10 percent tomorrow and is likely to fall further in the coming months, tracking international trends, an official has said. The move dovetails with the government’s call for price cuts on basic commodities and services, which is aimed at stabilising the economy and creating a conducive environment for domestic product competitiveness.

Since the adoption of the multi currency regime in 2009, a standard loaf of bread has been selling for $1 owing to the unavailability of smaller denominations of change.

The central bank has since introduced coins in denominations of one, five, 10 and 25 cents valued at par with US cents to address the price distortions.

“We met with representatives from several business associations including bakers and retailers and agreed that the rounding up of retail prices of bread to $1,00 was no longer fair and necessary in light of the introduction of bond coins by the Reserve Bank of Zimbabwe,” Grain Millers Association of Zimbabwe president, Tafadzwa Musarara told a Press conference yesterday.

“Retailers may apply mark ups of up to 10 percent on bread prices and the varying prices of bread from different bakeries must be allowed to reflect on the shelves by way of different retail prices.”

Comparatively, in South Africa, the price of a standard loaf averages 70 cents. Several bakers and retailers attended the Press briefing.

The Reserve Bank of Zimbabwe Governor John Mangudya, has said price cuts would ease the pressure on employers for increased salaries as it will ensure that workers get more value from the money they are earning. – Business Reporter/The Source.