( Gulfnews ) Bakeries in Zimbabwe remained closed yesterday and shop shelves were empty of bread despite a 300 per cent rise in the official price of a loaf.
The state Sunday Mail, a government mouthpiece, said the National Prices and Incomes Commission allowed the bread price to increase to 100,000 Zimbabwe dollars (73 fils at the dominant black market exchange rate) on Friday as part of a review to help businesses remain viable.
The rise came after the government slashed the price of bread by more than a half in June aimed at fighting the world's highest official inflation.
Bread, the cornmeal staple, meat and other basics then disappeared from store shelves as businesses were forced to sell their goods at below production costs.
The independent National Bakers' Association said chronic bread shortages would continue despite the price rise until flour supplies improved. "Only a few bakers have flour stocks ... the rest are likely to remain closed," said Vincent Mangoma , chairman of the association.