Wheat prices have soared 6.6% to 422.5p per ounce as the Russian invasion of Ukraine saw 29% of global wheat supplies in the “breadbasket of Europe” put at risk.
The price of the grain has risen to a new record of £281.90 per tonne with expectations prices will move higher as the conflict continues.
Russia is the world’s largest wheat producer and any disruption could to their exports will have a significant impact on supply.
The skyrocketing prices will add further pressure on households as UK inflation rates, which hit 5.5% in January this year and are predicted to rise to 7% for 2022.
An emergency G7 meeting is scheduled to be hosted by Germany on Friday for agriculture ministers to discuss a solution to the spiking prices.
The increase in wheat costs is set to see household staples including pasta, bread and cereal increase to levels already rising due to the Covid-19 pandemic and global supply chain obstacles.
“Nerves of steel will be needed amid the extreme volatility,” said analyst Daniel Briesemann at Commerzbank in Frankfurt.