Bakery prices rising with cost of flour - WMC Action News 5 - Memphis, Tennessee

Bakery prices rising with cost of flour

SAN FRANCISCO (NBC) - The price of flour is the highest it has been in years, and bakeries are feeling the strain. Most have been forced to raise the price of bread and other goods.

"Two and a half years ago we saw the same kind of spike, different kind of conditions. The situation is much worse today," said Lou Giraudo, chairman of Boudin Bakery in San Francisco. "We've seen a 95 percent increase over the last few months."

Boudin uses nearly 200,000 pounds of flour each week.

In July 2010, that cost the company about 14 cents a pound. Today, the price is nearly double that at 26 cents.

That increase has forced the bakery to increase prices.

"We've already raised our wholesale prices 6 percent," Giraudo said. "We've raised our restaurant prices for our own restaurants 1.5 percent, and we'll probably see about 20 to 30 cents a loaf at the retail level in the next month or so."

That may not be the last of the price increases.

The company said it will re-evaluate prices in the second quarter of this year.

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