Bread price rise on hold

The expected hike in bread prices has been put on hold after the Cabinet yesterday agreed to hold discussions with the bakers' cooperative.

Cooperative president Karmenu Micallef told The Times last night that the bakers were prepared to postpone any possible action, provided the government was really intent on holding "serious discussions".

The cooperative had warned that its members would increase the price of Maltese bread this week - to 21c for the large loaf and to 13c for the small - unless the burden of government-induced costs is eased.

It had written to the Consumer and Competition Division requesting a subsidy to compensate bakers for the higher cost of diesel and thin fuel oil and the cost of living rise.

The last increase in the price of bread was in January 2005. Since then the bakers have calculated that the cost of diesel and electricity had each gone up by Lm1 a day.

Mr Micallef said bakers' expenses were piling up by the day and that operators have been really careful to try and avoid shifting the costs onto consumers. "We are prepared to hold discussions with the government but let's hope the government doesn't intend to drag its feet. If that's going to be the case, then we really have no choice but to take action," he warned.

A spokesman for Cabinet told The Times the government was evaluating the situation. He had no further comments.