Will Higher Fuel and Wheat Prices Push Up the Cost of Bread?

Higher wheat, fuel, electricity and transport costs could lead to an increase in bread prices this autumn. Bakers, however, are currently trying to keep prices stable despite rising costs. According to them, production costs have already increased by around 5%, while a possible rise in the price of bread could be around 10%.

Higher wheat prices and record diesel prices are among the factors that could affect the price of bread this autumn.

“The situation we are in is quite serious, both for businesses and for people. Nevertheless, we will try to keep the price as affordable as possible for consumers. Despite the daily increases in the prices of raw materials and fuel, which is close to €2, for now we will try to keep the price as affordable as possible so that people can continue to have tasty country bread,” said Tsvetan Georgiev, a baker from the village of Ploski near Sandanski.

According to him, diesel and wheat prices have risen significantly over the past two months. Despite this, producers will currently try to maintain existing prices:

“For now, we will try to keep the price at its current level. But perhaps later – in a month, two or three – we will see whether there will be an increase, because it does not depend solely on us. We have an industry that communicates and determines the price of bread,” the baker explained.

He said fuel had the greatest impact on the price of bread, explaining:

“Definitely fuel, because it is the biggest factor that can affect the price of bread. As I said, it is approaching €2, which has a significant impact on the market – both on consumers and on businesses.”

Any potential increase is expected to affect different types of bread. Producers hope they will be able to maintain current prices for at least another month or two. Increases in bread prices are particularly noticeable to consumers because bread is one of the staple food products.

Georgiev said a sharp rise in prices was not expected:

“No, I don't think so. Within 10%. Ten per cent, if there is an increase, but it won't be that drastic.”

According to the baker, the production cost of bread has already increased by around 5%. If prices do rise, the cost of a loaf could reach around €1.20. Higher prices will inevitably also affect demand.

“It will certainly have an impact, but there will be some decline in demand and consumption. However, we expect people to understand us as well, because not everything is within our control,” the producer said.

The situation remains difficult for the industry, with producers having to find ways to adapt to constantly changing costs. According to Georgiev, some bakers in the area have already ceased operations because of rising costs.