Price of bread could increase by 20% as wheat prices reach nine-year high

Shoppers could find they are paying more for a few household food staples when they head to their local supermarkets in the coming weeks.

Industry chiefs have warned that prices of a loaf of bread and other bakery items are set to be increased by 20% due to the rising prices of one of the key ingredients, wheat.

The Mirror reports that rising global demand has sent the price of bread wheat up by 26.7 per cent in the past year while other costs continue to increase including fuel for transport and gas used in baking ovens.

Experts have said that some of the rising costs will be absorbed by retailers but higher prices on supermarket shelves are 'unavoidable.'

Bread is not the only item that is set to be become more costly, as pasta has also seen a rise in prices over the past few weeks, and global food prices are now at their highest level in a decade.

Other foods will also be affected. The wheat used for animal feed has also risen, though not by as much, currently running at around 16.2 per cent more than a year ago, reported trade journal The Grocer.

The news of the price increases comes after shoppers were previously warned about long-term price increases on some food and everyday products, due to changes in the supply chain.

Rising food prices have been impacted by rising fuel costs, the current shortage of HGV drivers and demands for higher wages to help with the recruitment process.

A shortage of HGV drivers and rising fuel prices have contributed to the latest price increases. (Getty Images)

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 Organisation reported a 'recent surge in agricultural input prices" adding: "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."

And 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."

Don't miss the latest news from around Scotland and beyond. Sign up to our daily newsletter here.