The Australian Competition and Consumer Commission is investigating rises in the price of bread around Australia.
Bread will be Goods and Services Tax-free.
"However, the ACCC's Price Exploitation Hotline [1300 302 502] has identified a level of public concern about rises in bread prices," ACCC Chairman, Professor Allan Fels, said today. "The purpose of the ACCC investigation is to determine whether or not there is any link with changes in the tax system.
"Bread rises rose substantially in the year 1999. The Consumer Price Index shows a rise around the whole of Australia of 6.3% in bread prices.
"Australian Bureau of Statistics data indicates that in many cases the price of a loaf of white bread rose by a greater amount than bread prices on average.
"This year there are no Consumer Price Index numbers available covering behaviour since the beginning of this year. ACCC survey work indicates there has been some further increase this year.
"The ACCC is, at this stage, inquiring in particular of bread manufacturers as to the rises in their prices and their causes.
"The inquiries were initiated two weeks ago but because of the continuing level of concern, the ACCC is making the fact of its inquiries public.
"The focus of our concern is whether the apparent price rises are in any way related to the introduction of the GST, particularly because there is a consumer perception of this, even though, in fact, bread will be GST-free".