David Murray

Biscuit maker McVitie's says the prices of many of its best-selling brands are set to soar.

The Firm , which is owned by Pladis Global, said brands such as Jaffa Cakes , Penguins and Hobnobs could go up in price by as much as 5%.

It blamed staff absences, more expensive ingredients and higher labour costs which it says it has to pass on to consumers.

However, it said its " humble chocolate digestive" would be less affected.

Pladis's UK Managing Director , David Murray , said: " Omicron disruption, absenteeism, and The Rising cost of business going forward present a big challenge for us.

" At the end of The Day , like in many other categories, it will flow through to higher prices. "

Pladis, which also manufactures Jacob's crackers and Go Ahead fruit bars, said it had seen double digit-percentage cost rises on ingredients such as cocoa beans recently.

Higher wheat prices have also hit The Business .

" We've dealt with substantial challenges in The Past in the Food Industry - whether it's Natural Disasters , inflation in the economic crisis, " Mr Murray said.

" It's the compression of The Challenge , combined with the scale of some of them [that is different This Time ], " he added.

Shortages of many goods, including Building Materials and computer chips, are causing supply problems and pushing up prices across industries.

The cost of living surged by 5. 1% in the 12 Months to November, up from 4. 2% the month before, and its highest level since September 2011.

Food and drink firms that they had seen " terrifying" price rises which would have a knock-on effect on consumers.

Source of news: bbc.com