The cost of key ingredients for Christmas puddings has soared by 21%, according to data from commodity analyst Mintec.
Prices for raisins have risen year-on-year in the UK, due to the depreciation of the pound – a factor that has impacted the cost of many bakery ingredients.
Meanwhile, prices for butter are at the highest level seen in five years, a result of limited production in the UK due to a shortfall in milk and milk fat supplies, which are mixed with flour and sugar.
UK wheat prices are up year on year, due to increased demand as a result of the high-quality crop this season.
EU sugar prices also rose this year due to low carry-over stocks from the 2015/16 season.
Prices for almonds have fallen year on year as production in California is expected to increase 8% in 2016/17.
Simon Hatcher, managing director of manufacturer Cole’s Puddings, told British Baker the exchange rate was making a huge difference when bringing ingredients into the UK.
“A lot of the dried fruit to go into Christmas puddings is bought in US dollars, so the exchange rate is making a large difference at the moment,” he said.
“Flour is going up, which is again down to the exchange rate for Canadian wheat. We make Christmas puddings all year round, so we set out a contract to retailers for prices through the year. Next year, we will have to re-look at the prices for our products. People are cautious when ingredients go up, but it’s something that’s happening to all manufacturers.”