Traders attributed the hike to the government’s increasing the price of a kilo flour by Rs. 3.

"We have no option but to increase the price of bread by Rs. 1. The increase in the price of flour will have a boomerang effect on other flour based products like patties, buns, cakes, etc." said a spokesman for the Bakery Owners Association.

Some leading restaurants and caterers told The Island that they will also have to increase the prices of flour based products, but the amount of the increases will be decided once the cost is calculated. They said that they too need to run a profit making business and feel sorry for their customers who have to face the brunt.

A spokesman for a leading super market chain told The Island yesterday that their selling price at the moment was Rs. 78 for a kilo of flour and this too "Till the old stocks last." Small time traders are selling at much higher rates.

The Minister of Cooperatives and Internal Trade, Johnston Fernando, and Chairman of the Consumer Affairs Authorities (CAA) Rumy Marzook were not available for comment.

The Island also learns that a price of a 12.5 kg LG Gas Cylinder will be increased by Rs. 50 to 75 on Wednesday (May 5). At present, a shell gas cylinder is Rs. 1,550 and Laughs Rs. 1,421.

Representatives from Shell and Laugfs had discussions with CAA officials on Thursday (April 29) and the price increase requested was Rs. 350 per 12.5 kg cylinder. The new increase in price was to be gazette effective April 30, but put on hold till Wednesday (May 5).