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Wheat prices driving up cost of bread

Wheat prices driving up cost of bread

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Marc Giauque reportingGasoline isn't the only thing you're paying a lot more for these days. Just check out the cost of a loaf of bread.

At the Taylorsville Great Harvest Bread Company they go through about 50 bags of flour and 50 bags of wheat every week.

Wheat prices driving up cost of bread

Store owner Rand Kunz says he's had to raise prices, but he credits a loyal customer base for keeping sales going. "December 31, we were paying like $13.50 for a bag of white flour, and now it's up to $22," Kunz told us.

On the overall market, wheat prices have increased by 79 percent in recent months. Analysts say there are two reasons: first, more farmers are growing corn for ethanol; second, crop yields have been lower in places like drought-stricken Australia.

Of course, the lower the supply, the greater the demand, and that leads to higher prices.


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