Consumers facing increases in their mortgage payments, gas and electricity are now to be hit with an additional price rise on their daily bread, it emerged today.
Continuing dramatic increases in the international price of wheat have driven up the production costs for bread, according to the Irish Bread Bakers Association (IBBA).
The organisation said the industry has no other option but to pass on some element of these increased costs to retailers early this year.
Shops are expected to slam a 10 per cent rise on the price a loaf, which currently costs between €1.20 and €1.80.
The announcement is among the growing number of increases to hit households this year, with interest rates, energy bills, cigarettes, and travel expenses all steadily rising.
Motorists are facing higher toll bridge charges with a ten cent increase on the Westlink, Eastlink and Northlink, and bus, rail, and Luas commuters are also being hit by fare increases of 2.75 per cent.
Poor harvests in Australia, the Ukraine, Argentina and North America are blamed on the dramatic increase in the cost of wheat.
Prices have surged to a 10-year high, as world wheat stockpiles have fallen to their lowest levels in 25 years and a drought in Australia has threatened to cut its harvest in half.
"Bread bakers are experiencing increases of up to 25% in the cost of flour, the main ingredient in bread," said Paul Kelly, of Food and Drink Industry Ireland on behalf of the IBBA.
"This is on top of increases of over 30 per cent in the cost of gas, the main energy source in baking bread. Ireland is not unique in this regard, it is a global problem and it shows no immediate signs of improvement, if anything it is worsening.
"While IBBA members are committed to keeping prices low, the major increase in the cost of flour comes at a time when other business costs are rising much faster than general inflation. Price rises are the inevitable result of these dramatic upward pressures.
"Regrettably there is no alternative option open to the industry in this regard."
PA