Rising food prices affect P.E.I. consumers

P.E.I. consumers are less than thrilled that oil and food especially staples such as bread, pasta, rice and coffee are about to become more expensive.

George Weston Ltd, which owns baker Weston Foods and retailer Loblaw, has announced it will raise prices on many items by an average offive per cent starting next month.

The price of key commodities has soared especially grain, rice and oil due topolitical unrest in the Middle East. Global oil prices have spiked on concerns about the potential impact of supply disruptions from Libya.

Skyrocketing food prices have been among the triggers for protests in Egypt, Tunisia and elsewhere and raised fears of a repeat of the food price crises in 2007 and 2008.

Loblaws' price increase also comes on the heels of news last month thatthe company'sprofits slipped 8.5 per cent in the fourth quarter as competitive pressures kept it from raising prices.

In Charlottetown, Buns n' Things bakery is already hiking its prices by five per cent, sayingthe cost of the flour and shortening it uses has gone up 20 per cent since last fall. The bakery has been absorbing the cost until now.

"Everything has gone up in the last couple of years, whether it's wages, or electricity, propane or whatever, so the increase is kind of long overdue," said Rob Deblos, owner of the bakery.

The news worries the Salvation Army food bank, which buys most of the food it hands out.

"It's going to affect our bottom line, but at the same time hopefully we can keep serving the way we do," said Salvation Army Lt.Ian Scott.

Other retailers such as Sobeys have suggested they'll have no choice but to raise food prices as well.