The price of wheat has hit a nine year high and global demand for grain has pushed the price u by 26.7% over the last year.
The price of pasta has already risen over the past weeks and it is highly likely that prices will increase.
Price rises will be absorbed by retailers which will then passed over to the customer, other amenities have also dramatically risen such as fuel and gas.
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.”
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.”
She added, “As long as global prices keep rising there is scope for domestic prices to keep rising.”
The UN’s Food and Agriculture Organization reported a “recent surge in agricultural input prices.”
They added, “Higher prices of these inputs will inevitably translate into higher production costs, and eventually into higher food prices.”
Gordon Polson, CEO of Britain’s Federation of Bakers, told The Grocer: “Energy pricing is also on the rise, while HGV driver shortages and recruitment are resulting in increased wage rates.”