Bakery chain Greggs has warned that it could be forced to raise its prices in stores as its own costs increase.
The Russian invasion of Ukraine threatens to increase the cost of raw ingredients, while the rising cost of fuel hikes the cost of transporting these.
Greggs was betting on price rises of 5% this year, but is now increasing that due to the conflict hitting its bottom line.
In January The Mirror reported Greggs would increase the price of its sausage rolls by 5p.
At the time, a Greggs spokesperson told Bloomberg : "Ingredients and labour costs have been rising and Greggs is not immune from that."
Greggs chief executive Roger Whiteside said the bakery could not rule out further price rises.
Whiteside said: "Food ingredients are getting more expensive, and energy is getting more expensive than it was looking like then."
He added: "All the proteins, all the cereals, all the oils - everything's going up in price.
“As ever, we will work to mitigate the impact of this on customers.
"However, given this dynamic, we do not currently expect material profit progression in the year ahead.
“We'll keep things under review as the market develops.”
The bakery chain normally keeps any price hikes limited, because it has a reputation of being good value for money.
But Whiteside said that might not always be the case.
He added: "I'm never going to give a promise that it will always be like that because there's uncertainty in the outlook.
"So depending on how the market reacts you might see that we want to protect prices at one end of the market where we can see competition is more intense, but move prices up more aggressively in other parts of the market."
Yesterday Greggs reported record profits of £146million for 2021 and confirmed plans to open 150 new stores this year.
Due to its bumper year in 2021, its shareholders will get a special payout of 40p per share this April, on top of the 57p a share already announced.
Yesterday The Mirror reported canned goods and sunflower oil are due to increase in price, but all supermarket goods could rise too due to soaring costs of petrol and fertiliser.
Even before the war, supermarket shoppers have been warned to brace for an annual grocery bill rise of around £180 as the cost of living crisis squeezes households.
But the Russian invasion of Ukraine threatens to increase food bills even further - though we are only just seeing the warning signs.
Market research firm Kantar said food prices rose 4.3% in February, with prices rising fastest for savoury snacks, fresh beef and cat food.
