BREAD UP 4P; Shoppers hit by the global wheat slump.

Byline: By MARTIN FRICKER

THE price of bread is set to jump by as much as four pence a loaf, experts warned yesterday.

Spiralling energy costs and a poor global wheat harvest have caused world stocks to slump to a 25-year low.

It has resulted in hikes of between 15 and 20 per cent in the price of flour.

With bread, biscuits and cakes set for significant price rises, shoppers could see their grocery bills soar.

Ian Pinner, chief of ADM Milling which owns nine mills, told trade magazine The Grocer: "This is the third year that we have had to accept increased energy costs.

"And weather conditions have had an adverse effect, with wheat prices 15 per cent higher than November 2005."

UK millers say they could be forced to add pounds 28.75 to the price of a tonne of flour from September.

Alexander Waugh, boss of Nabim, the trade association for flour millers, warned these increases would ultimately be passed on to consumers.

He said: "It is unusual to see such a large rise. But year-on-year energy prices have risen by 60 per cent and wheat yields have been affected by the hot weather - not only in Britain, but also in France and Germany."

Gordon Polson, director of the Federation of Bakers, said retailers were also being affected by fuel price rises. He added: "It is inevitable these costs will have to be recovered."

The National Association of Master Bakers, which represents around 1,000 small UK retailers, expects a loaf to go up by two to four pence

Rank Hovis said the price of its bread was being kept under review.

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INCREASE: Loaves