Price of bread rising yet again

THE PRICE of bread is going up by up to another 15 per cent, the second such increase in less than a month, in response to soaring increases in the international price of grain.

The price rises, which have already come into force in some bakeries, are set to affect all bakery products.

The Chairman of the Bakers’ Association, Gavriel Kazazis said yesterday that, “The 10-15 per cent increases will be imposed in all the bakeries by Wednesday.”

“The increase in the price of bread is due to the increase of the price of wheat and cereal, which have more than doubled, with the result that we have had a 30 per cent increase in the price of bread since the beginning of the year.

“Cyprus sells the cheapest bread in Europe with the exception of the former Eastern bloc, even though we buy the most expensive flour. We import flour in small quantities because of our size as an island; therefore we buy it at more expensive rates,” he said, adding most bakeries were operating at a loss under the current prices.

Consumer groups admit there is little that bakeries can do though they have called on retailers to share the pain as bread goes from a basic staple to an increasingly expensive luxury.

This time last year, a loaf of broad sold for the equivalent of around €1; a month ago, it was €1.40 and with the new increases it is expected to rise to €1.70.

International grain prices have soared over the past year, driven by rising oil prices, increasing demand in developing countries and the loss of agricultural land to biofuel crops. Investors stung by the subprime crisis and stock market falls have also switched to ‘safe havens’ like gold, oil and grain, adding to the price spiral.

Inflation in Cyprus has risen to 4.3 per cent, a whole percentage point higher than the euro zone average.