Bread now costs 3.50 RTGS dollars a loaf, up from 1.80 on Monday, according to prices displayed by most shops visited by Reuters in the capital, Harare.
“Bread has now become a luxury. How many people can afford it at this rate?” said Sarah Chisvo, a mother of three who was picking up groceries in a supermarket in central Harare.
“The government needs to do something before this gets out of hand.”
Zimbabwe ditched its own currency for the US dollar another currencies in 2009, after hyperinflation reached 500 billion percent the previous year.
In February, faced with acute shortages of US dollars, Zimbabwe introduced a new currency, called the Real Time Gross Settlement dollar.
The RTGS has been losing value ever since,forcing companies to increase prices. Year-on-year inflation raced to 66.8% in March, up from 59.39 the previous month, according to statistics agency Zim stats.
On Tuesday, the RTGS dollar was trading at 3.19 to the dollar on the interbank market and 5 on the black market.
RTGS $3.50 for a loaf of bread.
The Consumer council, Ministry of Industry, etc need to engage the Retailers Association and various Manufacturers to account for the increase in these prices.
Seems Govt is paralyzed on this issue.
— The CEO Zimbabwe (@TheCEOMagZim) April 16, 2019
That means a loaf of bread costs about 70 US cents a loaf, in a country where the average income is around $4 a day.
Bread is the most consumed staple after maize meal, and the increase follows that of other products like cooking oil, sugar and milk.
In January, a fuel price increase led to protests that left several people dead following a military crackdown.
While prices of basic goods continue to spike, salaries have largely remained unchanged, increasing public anger against President Emmerson Mnangagwa government.
Zimbabwe is suffering from the twin effects of drought and acyclone that wrecked the eastern parts of the country. That means the country needs to import food using scarce dollars,which will put further pressure on the exchange rate and prices,analysts say.
In Zim today, price of Flour went up by 90% and bread is now $3,40 (R47.60)a loaf starting this morning. @EFFSouthAfrica why not advise them to nationalise the farms, print more money and lower the prices? Alternatively, just increase everyone’s salary and the minimum wage
— Gavin Came (@GavinCame) April 16, 2019
The post Zimbabwe nearly doubles bread price as economic woes mount appeared first on SABC News – Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader..