Poor harvests lead to higher prices.

Households are set to face higher grocery costs as British farms reported losses after several months of exceptionally high rainfall.

Summer wheat harvests were just over 14% down on the average of the last five years - a low which has not been observed since the 1980s.

The disappointing harvest follows the highest levels of summer rain seen in England and Wales since the start of the last century, with 14.25in (362mm) of rainfall coming over the summer months.

Shoppers have been told by the British Retail Consortium to expect budgets to be squeezed due to global harvest troubles, with poor British wheat yields compounded by rain shortages in the USA and excessive heat in Russia.

Guy Gagen, NFU chief harvestable crops adviser, said that low crop yields could result in higher prices for consumers.

"The resulting tight supplies of many feed grains have driven up the prices of agricultural commodities around the world," he said.

Copyright Press Association 2012