Food prices set to rise after Russia bans grain exports

The price of a range of foods including bread, pasta and even meat look set to rise after wheat prices jumped following news that Russia was banning grain exports for the rest of the year.

Russia has seen a drought wipe off 20% of its normal wheat crop, as it suffers its hottest summer for 130 years when records began. The country is one of the world's largest grain exporters.

Wheat prices surged on the news to £4.95 a bushel - the highest figure for almost two years.

Yesterday Premier Foods confirmed it would pass rising prices on to retailers, leading to fears that the shelf price of a loaf of bread could rise by up to 10p.

Despite the rise, prices are still well below their highest level in February 2008 when they stood at £8.52.

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By Neil Gerrard

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