RBZ Slams "Exaggerated" Bread Price Hikes; Accuses Business of Fuel Price Exploitation
- Southerton Business Times
- 3 days ago
- 2 min read
VICTORIA FALLS – The Reserve Bank of Zimbabwe (RBZ) has issued a stern warning to the private sector, accusing businesses of "economic exploitation" by using recent fuel price volatility to justify disproportionate increases in the cost of basic groceries. Speaking at the Insurance and Pensions Symposium in Victoria Falls on Thursday, RBZ Deputy Governor Innocent Matshe challenged the mathematical logic behind the latest price adjustments, specifically targeting the soaring cost of a standard loaf of bread.
The Deputy Governor’s remarks follow reports that bread prices have jumped to US$1.10, a move he claims is untethered from actual production costs.
“I am asking, where does the US$0.10 come from?” Matshe queried. “It’s not related to the percentage contribution of transportation. It doesn’t contribute 25 per cent, or nowhere near 20 per cent. You can see that people really have exaggerated the movement in the price of fuel.”
Matshe argued that while fuel is a factor, the current "wave of unjustified price hikes" is driven more by speculative perception than by the reality of the supply chain.
The RBZ's criticism comes against a backdrop of significant energy price shocks. Throughout March 2026, Zimbabwean motorists and logistics firms faced aggressive adjustments:
Date (March 2026) | Diesel 50 (per litre) | Petrol E5 (per litre) |
Early March | US$1.52 | US$1.56 |
Mid-March | US$1.77 | US$1.71 |
March 18 Peak | US$2.05 | US$2.17 |
Despite a 39% increase in petrol prices within 18 days, the central bank maintains that the pass-through effect on a single loaf of bread should not equate to a 10% retail price jump.
The RBZ’s rhetoric signals a potential return to more aggressive market monitoring. By labeling these hikes as a "threat to national stability," the bank is framing the pricing behavior of retailers not just as a commercial decision, but as a socio-economic risk.
Industry leaders, however, argue that fuel is only one component; the rising costs of electricity, imported ingredients, and the risk of currency fluctuations also weigh heavily on the final shelf price. As the standoff between Town House and the private sector intensifies, consumers remain the primary victims of this "inflationary tug-of-war."
RBZ bread price hikes 2026
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