(Bloomberg) -- The world’s top wheat importer is seeing prices rise for some unsubsidized bread, as Egyptian bakers blame increasing input costs following Russia’s invasion of Ukraine.

A pack of five flat-bread loaves can now sell for about 7.5 pounds ($0.48) in the greater Cairo area, up from 5 pounds a week ago, according to Khaled Sabri, a member of the bakeries division at Egypt’s chamber of commerce.

The war in Ukraine, sanctions against Russia and soaring insurance and freight costs are combining to send wheat prices to the highest in more than a decade. It’s a rise with particular resonance for Egypt, which gets much of its wheat from Russia and Ukraine and uses it as the cornerstone of a bread-subsidy program used by millions of people in the most populous Arab nation.

Authorities say Egypt’s stocks are enough for at least four months as it seeks alternative suppliers and bigger local harvests while studying a reduction of the subsidy system that was proposed before the conflict. The Supply Ministry has suggested it may lower the number of people eligible for the program, while ensuring the poorest are still protected.

The North African nation consumes about 21.3 million tons of wheat a year, the majority of which -- imported and homegrown -- goes toward subsidies that provides cardholders a loaf for about 1 U.S. cent. The rest is taken by thousands of Egyptian bakers and retailers, who’re largely left to set their own prices for bread, pastries and other products. 

The government has acknowledged it’ll have to spend more due to higher wheat and oil prices, but has renewed warnings that those selling unsubsidized bread and other food items will be closely monitored to guard against any “price manipulation.”

Asharq TV on Sunday cited Finance Minister Mohamed Maait as saying the effects of the war in Ukraine will add 12 billion to 15 billion pounds to government spending in the fiscal year that ends at the close of June.

Bakery owners are already feeling the squeeze, according to Attia Hammad, head of the chamber’s bakeries division.

They’re “getting a ton of flour for 12,300 pounds versus 9,000 a week ago, on top of the high price they pay for everything from electricity to fuel,” he said. “I’m not saying the government should leave bakeries alone -- no, they should inspect and control them, but input prices are already hitting them.”

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