The price of bread is expected to rise by 6c in Ireland, following a rise in flour prices.

The country’s top miller, the Odlum Group, has increased flour prices by ?35 per tonne.

"We have to pass on the substantial increases we are being faced with to maintain a viable business," said Jim Henry, Odlum chief executive. As the cost of wheat has not yet stabilised, he did not rule out further price increases but, with stock in hand, not before January 2007.

This is the first flour price increase in Ireland in over two years. The heatwave in Europe and Russia have resulted in a 25 year low in grain stocks and price increases of 25-30% on last year.