Bread prices to increase by 10% in Channel Islands

The price of bread produced by the Channel Islands' largest bakeries will rise from about 10% from next week.

Cimandis, which runs Warry's in Guernsey and C.I. Bakery in Jersey, said it had to increase the cost of baked goods due to problems with wheat supplies.

It said since July the price of wheat had jumped about 35%.

Managing director Paul Luxon said: "The price hike in wheat has caught everyone in the marketplace by surprise."

He said: "We promise to do everything we can to stabilise prices and continue to look after our customers in the Channel Islands."

Mr Luxon said rising wheat inflation, fuel, agricultural commodities and raw material costs would have to be passed on to retailers, which would lead to an increase in the price of a loaf of bread.

He said harsh droughts and wildfires in Russia, one of the world's largest exporters, are thought to have killed a fifth of its wheat crops, pushing global prices higher.

Mr Luxon said a second price increase was also possible early next year, and the company was currently in negotiations with its suppliers to minimize the impact on the wholesale price of bread.

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