Food prices could soar after huge increase in cost of wheat

The price of many everyday food items could be set to soar at Shropshire supermarkets after the cost of wheat saw its sharpest monthly rise in 37 years.

Bread, pasta, biscuits and beer are just some of the items likely to be affected by the price rise - as well as many poultry products.

The price of wheat has jumped by more than 50 per cent since the end of June this year, which has been sparked by a shortage in supply.

Industry experts warn that the situation is likely to continue, with the worst drought in 130 years having ravaged crops in Russia - one of the world's largest wheat exporters.

"With wheat prices so elevated, suppliers and retailers will have to pass across costs to the consumer," said Neil Saunders, from retail analysts Verdict.

"It's not just in bread. Many other grain-based products, such as beer, will also rise," he said.

Mr Saunders added: "We won't see a return to 1970s-style inflation as the grocery sector is far more competitive now than it was back then, but a price rise is inevitable."

Analysts expect the situation to prompt a five pence rise in the cost of a typical loaf of bread.

The National Farmers Union said the wheat shortage would also increase feed costs for poultry producers.

Nearly two thirds of the cost of growing a chicken, or producing a dozen eggs, is taken up by feed bills.