THE increase in the price of bread – the poor man’s food – is a sign of things to come, say the experts.
Vasant Bharath, former Minister of Trade and Industry, is blaming the price increase announced by Kiss Bakery on the Property Tax.
Bharath said: “One of the consequences of implementing the Property Tax is that the cost of living across the board, i.e. food, medicine, rent, gas, etc., will increase.
“Bread prices went up in anticipation of these increased taxes.
“Property Tax is to compensate for mismanagement and incompetence in other areas, e.g. NGC’s (National Gas Company) loss of our $500 million.
“It is going to get worse.”
He said that while “prices out of our control have increased,” that “those within our control i.e. increased taxes, are not.”
Kiss Bakers blamed the price increase on higher costs of raw material, which went up “by as much as 30 per cent, in some instances.”
A white bread now retails at $15, and a 12-grain product, at $17.
The increased prices by the country’s leading baker are expected to lead to higher charges by all other bakeries.
This would further jack up the cost of living, which has been adversely affected by the foreign exchange shortage and international shipping issues.
Some experts and consumers are seeing the bread price hike as a precursor to tough financial measures in the forthcoming national budget.
The Government has admitted that this is “guava season” for the economy, with a massive slump in revenues and a growing national debt.
