Premier Foods, owner of a raft of household brands including Mr Kipling, is preparing to increase the price retailers pay for its products.

The business, which also produces Cadbury cakes under licence from Mondelēz International and makes Paul Hollywood-branded baking mixes, is the latest supplier to announce price hikes in the wake of the Brexit referendum and the consequent fluctuation in the value of sterling.

Premier has said it will be increasing cost prices across its product range by, on average, “around the mid-single-digit mark”.

The business has not revealed specific details of price hikes, and said the pricing situation varied between categories and brands. It is currently discussing potential increases with individual retail customers.

Weak sterling has contributed to increases in the price UK buyers pay for commodities traded in other currencies.

Reporting its financial results in November, Premier had said the Brexit referendum result was having “little if any impact” on consumer spending in the UK. It reported the impact would be the effects of sterling weakness, adding that its main exposure to foreign currency was through euros, of which it is a net purchaser of more than €50m a year.

"We take a blended approach to managing cost increases driven by currency and commodity factors,” Premier said in a statement today (11 January).

“We look to manage our own efficiencies, adjust promotional mechanics and formats where appropriate and finally look at limited price increases where these can’t be avoided.”

In the past 12 months, the average retail price of Mr Kipling products has fallen slightly, according to data from retail analysts Looking at the ‘big four’ supermarkets (Tesco, Asda, Sainsbury’s and Morrisons), the average unit price after promotions was £1.44 on 11 January 2016 compared with £1.42 on 11 January this year.

Premier also produces brands including Oxo, Bisto, Ambrosia and Loyd Grossman.

Businesses that have increased cost prices following the Brexit vote include Unilever and Walkers.