Food Prices Warning as World Wheat Costs Rise

Adrian Lowery

Shoppers were warned today that food prices are set to soar further, after food inflation already jumped in July.

Hovis group Premier Foods said it will have to pass the soaring cost of wheat on to retailers, leading to fears that the shelf price of a loaf of bread could rise by up to 10p.

The warning comes as new figures showed food inflation already rising. The British Retail Consortium said food prices in July were 2.5% up on a year earlier, compared to a figure of only 1.7% in June.

The BRC blamed higher animal feed and wheat costs, and strong rises in the global price of other commodities such as palm oil, cocoa and soya oil.

And it warned that shoppers could be in for more expensive groceries as world commodity prices rise.