It now seems to be a regular occurrence on The Rand Today, to read about the price of something going up. If it is not fuel, it is beer or it is interest rates. I can not wait for the day I can write about the price of something going down in South Africa. From today, consumers in South Africa are going to have to pay more than they are used to for a loaf of bread. Prices are set to rise by about 40 cents a loaf. And it may not stop there as prices may continue to to go up in the future due to the rising wheat prices.

Not only are the rising wheat prices causing the rise in bread prices, but the rising fuel prices are also a large contributing factor, and when Eskom’s proposed electricity prices go up, the price of bread could further go up to. The world demand for wheat has outstripped supply and thus the increase in wheat prices. The Northern Hemisphere is a large contributor to the wheat supply and its harvest is only due out in August / September and depending on how well their harvest is will go a long way to determine the wheat prices.

Bread is a necessity for many families in South Africa and many may start to struggle now with this increase in prices. An increase of 40 cents a loaf will really hurt the ‘poor’ in South Africa. But as much as we may to cry foul to the bakers, it is beyond their control as they have to remain in business in order to produce the bread, and if input costs are soring they have no option but to increase their prices. Even after the R99m fine to bakers for admitting to being involved in a bread and milling cartel, these price increases are being done by the individual bakers alone as each baker seems to be increasing according to what they see fit and currently it seems the average price increase will be about 40 cents a loaf.

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