Increase in commodity costs looks set to be passed down to consumers

PREMIER Foods chief executive Robert Schofield warned yesterday that food prices were likely to rise by 8 per cent over the next year.

Continued rises in commodity costs look set to be passed onto consumers, with baked beans, soy and maize prices remaining high.

Canning had been the biggest cost challenge for Premier this year, he added, saying: "Steel prices are going through the roof."

The company has already hiked prices by almost 7 per cent this year.