Leading baker, Lobel’s bread has hiked its prices for a loaf of bread to $345 amid reports competitors were also planning to follow suit.
The increase will come as a shock to hardpressed Zimbabweans many of whom continue to earn their wages in Zim-dollars.
A local baker who preferred to remain anonymous told Zimstar News the biggest cost drivers to the increase in bread prices is the recent hike in prices of fuel.
Fuel in Zimbabwe is a major determinant in the pricing of other commodities.
To survive the tough economic environment, many businesses in the country have pegged their prices in the more stable US dollar.
But government has warned it could soon force businesses to resort to the local currency.
Addressing Zanu PF supporters in Muzvezve constituency recently, President Emmerson Mnangagwa said his government will soon force businesses to trade in the Zimbabwe dollar.
“We are saying to our industrialists such as Innscor, that any investor who comes into the country should buy whatever he wants in Zimbabwe dollars,” he said.
Innscor, which runs food outlets such as Chicken Inn and Bakers Inn was among the first local businesses to charge their products in US dollars after the local currency went on a free-fall past couple of years.
Added Mnangagwa, “We are putting measures to make sure that we deal once and for all with companies that are manipulating the local currency.
“We also have locals who are indiscriminately raising prices, punishing the people but we are going to put measures that will ensure that our currency will be sought after and that the US dollar doesn’t dominate.”