Allied Bakeries is the first of the big bakeries to announce an increase in bread prices in the face of rising flour prices. It is to put the price of an 800g loaf up 3p from September 17. Stephen Thompson, marketing director of Scottish convenience chain Morning, Noon and Night, said: "Scottish independents have only one serious bread supplier, Allied Bakeries. On the back of a 2p increase on February 12 this year, this is an increase of more than 9% in seven months on the cost of a standard Sunblest loaf." And the customer may have to take a hit of over 3p a loaf. Industry sources suggested retailers would protect margins by raising bread's shelf price between 4-6p. But a spokeswoman from Asda said the supermarket has no plans to raise bread prices. She said: "Our price for a loaf of Kingsmill, as an example, has dropped from 63p in June '98 to 54p now." {{NEWS }}