Cost of bread rises €0.30 in response to soaring energy costs

Cost of bread rises €0.30 in response to soaring energy costs
Photo by Yeh Xintong on Unsplash

The price of a loaf of bread will rise this year by 30 cents to €2.70, according to calculations from Bakkers Vlaanderen, the Flemish bakers' federation.

It represents an increase of 13% compared to last year, Belga News Agency reports.

There hasn't been a fixed price for bread since 2004, with bakers deciding for themselves how much to charge. But Bakkers Vlaanderen does calculate an annual reference sales price, the so-called bakery index, which includes the most important cost price elements of a loaf of bread.

High energy prices largely to blame

The increase in the sales price is mainly due to the increase in energy costs and to a lesser extent that of raw materials.

Raw material prices rose by 12% due to the coronavirus crisis and the war in Ukraine, according to Bakkers Vlaanderen, but energy costs rose by 258%.

The energy cost component carries less weight in the bakery index than raw materials at 5% compared to 26%.

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Other cost components that are included in the index are sales wages (25%), production wages (18%) and general costs (26%). These components are also rising, but not by as much as energy.

Bakkers Vlaanderen stressed that the data is purely informative and based on average prices. Each baker must make his own calculation, the federation reiterated on its website.

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