The price of a loaf is set to soar by 20% experts in Britain have warned as wheat prices hit nine-year high, and fuel costs for transport and prices for gas for baking ovens soar due to carbon taxes.
Another food stable, pasta is also expected to see a price hike.
Similar price rises might be expected here in Ireland, especially given that there are no mills in Ireland that produce industrial flour. The Odlums mill in Portarlington, Co Laois, produces ‘retail’ flour, or packets of flour, for shoppers.
Alice Jones, analyst with agricultural body AHDB, told the Daily Mail that: ‘UK prices are following global trends’ and that bread wheat is now trading on commodity markets at £255.40 a tonne, up nearly 27 per cent on a year ago.
“Allied Bakeries, which owns best-selling brand Kingsmill, said the industry was ‘exposed to inflationary pressure’ over the cost of flour, gas and delivery fuel’,” the paper reported.
Carbon taxes are added to the price of petrol, gas, fuel and electricity – but customers are now realising that these costs also trickle down to the cost of many other everyday goods.
When transport costs increase, that price bump is passed onto the consumer. In the case of bread production, increased transport costs for both inputs and baked goods, and escalating costs of gas or electricity for ovens means daily shoppers end up paying more.
As part of the Programme for Government agreed by Fianna Fáil, Fine Gael and the Green Party, carbon taxes will steadily increase to up to €100 per tonne by 2030.
Carbon tax increased by €7.50 from €26 per tonne to €33.50 per tonne in Budget 2021 and increased €6 per tonne in the previous budget.