The wholesale price of wheat has already risen by around 75% this year – its highest point since 2008 – affecting ingredients such as bread and pasta. The rise is directly connected to the crisis in Ukraine, which is known as the ‘breadbasket of Europe’ because of the large amounts of wheat, corn and other grains that are produced in the country.
Together, Russia and Ukraine account for around a third of globally traded wheat.
Food prices in the UK were already rising before the conflict in Ukraine began. In January, the price of food rose by 2.7 per cent, its highest level since October 2013, according to figures from the British Retail Consortium.
The price of pork is also expected to rise heavily, according to Defra minister Victoria Prentis. As reported in the Guardian, Prentis, the minister responsible for farming, said that British people would have to become more willing to pay premium prices for quality food produced domestically.
Rising petrol prices have already been pushing up the cost of ingredients, with the price of oil today (7 March) hitting $139 a barrel, the highest level for almost a decade and a half.
Year-on-year foodservice inflation reached 3.5% in December 2021 with further prices rises forecast over the next three to six months, a new report from CGA and Prestige Purchasing shows.
“2022 will be a year we will all remember as the first year of significant inflation for over a decade,” says Shaun Allen, Prestige Purchasing CEO.