Bread and white pastry prices could face a new increase. The baking industry says production costs have risen again, while the scope for absorbing them without adjusting prices is becoming increasingly limited.

It is not yet known how large any potential increase might be, or whether all producers will change their prices. Industry representatives say they are closely monitoring developments.

Flour is the main driver of this pressure, but it is not the only expense. Before bread reaches store shelves, producers must also cover other raw materials, packaging, electricity, fuel, transportation and labor. When several of these costs rise simultaneously, the final cost weighs on producers and, in most cases, consumers as well.

The bakery sector warns that if the current trend continues, some producers will be forced to adjust their prices.

Energy remains one of the main concerns. Bakeries cannot simply stop operating during periods when electricity is more expensive. The process takes many hours, production begins at night, and finished products must be delivered to stores every day. For this reason, any change in energy prices is directly reflected in production costs.

The industry’s sensitivity to energy costs was also acknowledged last spring. In April, representatives of the milling and baking industry decided that prices would remain unchanged until the end of the month while the situation regarding oil and other expenses was monitored. At the time, they said that solutions would be sought if the situation involving energy and oil worsened.

At the time, the sector stated that “bread and pastry prices should not increase” and announced that developments would be analyzed further. However, only a few months later, cost pressures have once again come into focus.

According to economists, a product such as bread cannot be assessed on the basis of only one component. Rising flour prices may be the main factor, but if transportation, energy, wages, packaging and other raw material costs also increase at the same time, producers have increasingly less room to absorb the additional burden.

Official data show that cost pressures have not completely subsided. In June, agricultural input prices were 6.4 percent higher than in the same period last year. Meanwhile, consumer prices recorded a monthly increase of 0.1 percent in July.

Another source of uncertainty is the international market. During July, wheat and corn prices rose again amid geopolitical tensions and weather-related difficulties in key producing regions. The chief economist of the United Nations Food and Agriculture Organization also warned of the possibility of a new wave of food inflation as a result of conflicts, energy costs and climate impacts.

For consumers, the main question remains how much they will pay for bread at the checkout. No specific new price has currently been set, as bakers are discussing pressure on production rather than a prepared price list. However, if flour, energy and transportation costs continue to rise, an adjustment to bread and white pastry prices remains possible, Alsat reports.

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