Monday, July 23, 2007

30% price increase of bread

Anyone buying bread this morning was in for a surprise: overnight, the price of bread has increased with roughly 30 percent. That is, the price is the same, but the quantity has dropped with roughly one third. Starting Thursday, the “bread makers” will go on full strike, so get it while you can.

The reason is a government plan to up the official price of bread, which is heavily subsidized. The international prices of grains have increased rapidly, partly due to the environmentalists's demand for "green" bio-fuel. In order words, thanks to the Gorists (people who believe Al Gore's call to save the planet), the government felt it was necessary to adjust the Lebanese bread prices otherwise the subsidies would spin out of control.

This was not to the liking of the bread makers, so as per Lebanese Logic™ they upped the price far above the governmental increase. Clearly, this will anger the public, but hey, the bread makers are companies without faces while the government is highly visible. The former group must be guessing that the lion share of the blame will fall on Siniora. Especially now: since the hike in fuel prices last week people already have plenty to complain about.