Supermarkets and bread makers have started increasing prices by around 30 cents a loaf with everything from milk to meat set to follow.
“Customers will feel it, not just in bread but in a number of different food categories,” David Christie from Baker’s Delight said.
The worst drought since the millennium is putting wheat farmers through the mill.
The harvest is at its lowest level for a decade and that’s pushing up prices by 50 per cent.
Coles and Woolworths, where two-thirds of the nation’s bread is bought, have already upped prices on some branded and private label lines.
The old $1 loaves are now $1.25, while $2 bread is now $2.30. Aldi’s done the same.
And it’s not just bread that’s bearing the brunt of the price hike.
“All sorts of agricultural commodities are increasing as a result of the drought and that’s something that we expect to continue for some time,” Tanya Barden of the Australian Food and Grocery Council said.