Greggs warns of price rises as commodity costs soar

Vegan sausage rolls and steak bakes on sale at Greggs, which plans to open 150 new shops every year despite cost pressures. Photograph: Phil Noble/Reuters

The bakery chain Greggs has warned prices are likely to increase due to a surge in the costs of ingredients, energy and fuel after Russia’s invasion of Ukraine.

Greggs, best known for its sausage rolls and pasties, predicted profits would fail to increase in the year ahead as it tried to offset cost inflation of up to 7%, up from 5% at the start of 2022, with the uncertain outlook.