Inflation Is Coming for Your Greggs Sausage Roll
Greggs Plc, Britain’s biggest bakery chain, has raised its prices by between 5 pence ($0.07) and 10 pence “across the range” to cover the rising costs of ingredients and labor.
The popular fast food outlet sells sausage rolls and steak bakes from its 2,000 outlets and is seen as a benchmark for good value in the U.K. A spokesman said the decision to raise its prices was taken after an end-of-year review.
The increase is the latest sign of rapid price gains that are squeezing living standards in the U.K. According to one official survey on Thursday, companies plan to raise selling prices by 5% this year, which will pile more pressure on households already facing a 50% increase in energy bills and a tax rise in April.
Greggs’ price increases amount to roughly 5% overall, though the spokesman said there was no official percentage rise being targeted.
“It was very much a last resort. Ingredients and labor costs have been rising and Greggs is not immune from that,” he said. “The company does absorb some of the cost but has put up prices by about 5-10 pence across the range.”
The spokesman said Greggs last raised its prices in December 2020, by a similar amount, but stressed that it remained “good value”.
©2022 Bloomberg L.P.