Retailers will have to increase bread prices as the cost of raw ingredients continues to rocket, according to Warburtons chairman Jonathan Warburton.

Speaking at a KPMG retail event on the issue of increased bread prices, Warburton said:

“The last 12 to 18 months have been challenging for the food industry as a whole and the bakery industry in particular.

"The cost of raw materials such as wheat and oil around the world, have risen dramatically.

"The challenge continues as the pressure is on the retailers to keep the prices low, however this is unsustainable in the current climate."

"We invest pretty much all we make back into our business, and the worst thing we can do is cut corners in terms of quality.

Warburtons has always and will always source only the very best quality raw materials to ensure our products meet the high demands of consumers in terms of quality, freshness and taste.”