Heatwave puts 10p on loaf of bread

CHIP butty lovers could soon be paying more for their favourite snack as Europe's sizzling heatwave hits wheat and potato crops.

Supermarkets are planning to increase the price of a loaf by up to 10p in response to higher wholesale bread prices. The cost of a bag of spuds is also expected to rise.

Soaring temperatures on the Continent have slashed the size of wheat harvests in drought-affected areas. In France the harvest is expected to be down by about 20% this year.

'Russia and the Ukraine experienced intense cold followed by drought which halved the level of production,' said Gerald Mason, senior economist at the Homegrown Cereals Authority. 'Then Europe saw high temperatures and dry conditions. This unusual combination has dramatically reduced the size of the wheat harvest.'

The dearth has pushed up the cost of wheat, in turn forcing up flour prices. Leading British miller Rank Hovis recently announced it was raising its flour prices by £35 a tonne.

British Bakeries, maker of Hovis and Mothers Pride bread, responded by unveiling a 15% rise in the wholesale price of its bread. David Walker, spokesman for British Bakeries, said: 'Experience shows that the same sort of percentage increase feeds through to the consumer.'

Kevin Hawkins, communications director at Safeway, said: 'It probably means something like 5p to 10p on the price of a loaf from the middle of September. But we want to have further discussions with our suppliers.'