Maputo — The Mozambican Baker's Association (AMOPAO) has refuted as rumours news circulated by the local press claiming a 50 cents increase in the current price of bread, with effect as from next week.

Despite the volatility of wheat prices in the world markets, Victor Miguel, AMOPAO's chairperson argues that nothing justifies an immediate price hike.

According to Miguel, despite the wheat prices in the international markets, this should never have any immediate repercussion in Mozambique, as the millers are still carrying huge amounts of old stocks.

"There is still large amounts of old stock in the country, therefore there is no need for any increase in the bread prices. First, we have to run out of old stock, then order new stock under current prices, then we will have to assess the situation", said Miguel cited on the Friday's issue of the daily "Noticias".

The last price increase came into effect bread February 1, with a loaf weighing 200 grams now costing 4.5 meticais up from the previous four meticais, meaning a rise of 12.5 per cent (at current exchange rates there are about 24 meticais to the US dollar).

Smaller bread rolls also went up by 50 cents - from 3.5 to four meticais, an increase of 14.3 per cent.