Price of a loaf of bread increased by Rs.5 from midnight

Colombo (News 1st): The price of a loaf of bread will be increased by Rs. 5 with effect from midnight today (July 17). The Chairman of the All Ceylon Bakery Owners Association, N.K. Jayawardena, said the decision was taken after the price of wheat flour was increased by Rs. 7 yesterday (July 16). Meanwhile, the Consumer Affairs Authority (or CAA) says that they will initiate legal action against the Prima and Serendib companies for increasing the price of wheat flour without obtaining their approval. The Director-General of the CAA, M.M. Fauzer, said that wheat flour has been labelled an essential food item, and therefore the CAA's approval needs to be sought when changing prices. Prima and Serendib increased their prices by Rs. 7, adding that they have informed all distributors islandwide of the amended prices. The companies said that although the price was increased by Rs. 7, the addition of taxes would lead to a further increase in prices. The companies said the depreciation of the Rupee against the Dollar led to them making this decision 7 months ago. However, the CAA stated that they will raid shops which sell wheat flour at increased prices. While companies have been subject to legal action from the Consumer Affairs Authority in the past, those hearings are yet to be concluded.