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The price of a standard loaf of bread has broken the £1 barrier for the first time. In the early 1990s supermarket price war, a loaf dropped to as little as 7p

Tesco has been the first to move, raising the price of an 800g loaf of sliced white Warburtons to £1.03 after the Bolton bakery company raised its wholesale prices last week. The other bakery giants are expected to follow suit in the next few days, followed swiftly by the supermarkets, meaning that it will be hard to find a branded loaf under £1 by the end of the month.

Tesco insisted that it still sold plenty of cheap loaves, at less than 45p. And Warburtons justified the move saying that it had not raised its prices since March of last year and since then it has been battered by high costs — not least the price of wheat.

Roz Cuschieri, the commercial director at the bakery company, said: "Our principal raw material has gone up a lot in price because of the global shortage of wheat. Extreme weather conditions have affected harvests."
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