Bakers warned of fines if they raise bread prices

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Bakers warned of fines if they raise bread prices

5:31 CAT | 05 Jul 2016

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The Inspectorate of Economic Activities (IAE) has warned bakers in the capital city Maputo that they face being fined if they sell bread for more than the stipulated prices.

The warning was given on Monday by the head of IAE in Maputo, Elias Jamisse, who said that the law will be used to penalise bakers who take advantage of the current economic climate to indulge in price speculation.

At the end of June, the Mozambican Association of Bakers (AMOPAO) proposed that the price of bread be increased in response to rising production costs. AMOPAO planned to raise the price of a 200 gram loaf from six to seven meticais, whilst a 250 gram loaf would increase from 7.5 to nine meticais.

However, on 1 July the government placed a temporary suspension on the proposal whilst a review of the supply chain is undertaken.

The price of bread rose dramatically in October last year with AMOPAO imposing a 1.5 meticais increase for all types of bread. Thus, a 250 gram loaf went up in price from six to 7.5 meticais. Under the most recent proposal, this size of loaf would cost nine meticais – a fifty per cent increase in less than a year.

Source: AIM