The price of bread and other bakery products could see a spike of 20 per cent in the coming week after wheat prices hit a nine-year high, industry chiefs have warned on Sunday (21).
Price of bread wheat has gone up by 26.7 per cent in the past year due to rising demand while other costs continue to increase including fuel for transport and gas used in baking ovens.
Bread wheat is now trading on commodity markets at £255.40 a tonne, up nearly 27 per cent on a year ago and at its highest for nine years.
Record-high petrol prices are also driving up the transport cost while freight costs have also risen, making it more expensive for British bakers to import the Canadian wheat found in most of our bread.
Alice Jones, analyst with agricultural body, AHDB, said: "Global wheat prices keep climbing each week on the back of supply concerns, and UK prices are following global trends."
"As long as global prices keep rising there is scope for domestic prices to keep rising."
While some of the higher costs may be absorbed by retailers, higher price tags will be visible very soon, said the reports citing industry experts.
Now that food prices are at a ten year high globally, pasta prices have already started to rise in recent weeks with more increases likely to follow.
"Energy pricing is also on the rise, while HGV driver shortages and recruitment are resulting in increased wage rates,” a report quoted Gordon Polson, CEO of Britain's Federation of Bakers, as saying.
Allied Bakeries, which owns Kingsmill, said the industry was "exposed to inflationary pressure in relation to the cost of flour, as well as the gas we use in our ovens and fuel for our delivery fleet."
