It would appear that the government has finally caved in and gave bakers what they wanted-another price hike. According to our informants, bread from Baker’s Inn, one of the country’s major bakers has been selling for just under $16 in some shops including Baker’s Inn outlets and OK supermarkets.

Just like magic the missing bread is all suddenly there proving our point that all these shortages were the result of pricing disputes between the government which essentially controls the price of bread. That’s not all …

Bakers Want Regular Price Reviews

There are also reports that bakers want the price of bread to be reviewed regularly just like what the government does with the ZESA and fuel. ZERA reviews the price of fuel every weekend with the new price usually coming into effect each Monday. ZESA tariffs, the government has said, will be reviewed each month.

The argument is that bread should be sold at a $1 USD equivalent if bakers are to make a profit. Bakers feel that increasing the price of fuel and ZESA tariffs erodes their profits and sometimes they end up making losses. If costs are reviewed then it is only fair that the selling price is also reviewed to ensure that everything remains in balance.

A question of affordability

The truth is that the balance was upset a long time ago. While businesses cheerfully review the selling prices and sometimes peg them against the USD (something the government claims is illegal even though they and every business are doing it). Wages and salaries remain stagnant.

This has caused aggregate demand to fall by as much as almost 50% for non-essential goods as customers feel the squeeze of austerity.