The price of an Ulster Fry has risen a record 19.1% since this time last year, according to the annual index.
Ulster Bank tracks the cost of the regional favourite to keep tabs on food prices and the impact this might have on household spending and the local economy.
Its chief economist, Richard Ramsey, revealed their latest findings at the annual Balmoral Business breakfast in Belfast on Wednesday morning.
Read more: Northern Ireland funeral director calls on council to scrap 'astronomical' burial costs
He said: "We know food makes up a significant proportion of household spending and is also one of our most important economic drivers in terms of the local Food and Drink industry. So understanding how the price of these popular food items is changing gives us a useful insight into the state of typical household finances and also the overall health of the agri-food industry.
"What the Ulster Fry Index is telling us is that the price of everyday household essentials such as bread and milk have risen beyond their previous peaks, and this coupled with rising energy bills is continuing to put a squeeze on consumer spending powers.
"While it may not deliver good news initially, the reality is however, that we can expect these rises to begin to level off and we may even see some decreases in the next 12 months. That said, this will bring little comfort to those households who are struggling to contend with double-digit inflation and ongoing cost pressures on what have previously been considered every day or basic household items."
So what's the cost of an Ulster Fry now?
According to the annual Ulster Fry Index, which indicates the average price of all ingredients making up the traditional cooked breakfast plate rose in the 12 months to the end of February using the UK Retail Price Index, milk has seen the biggest price hike, rising 42.9% throughout the previous 12 months.
It was followed by strong rises in margarine (31.5%), eggs (29.3%), butter (25.4%) and sliced loaf (21.1%).
Overall, the Ulster Fry Index rose by 19.1%, the highest increase recorded since Ulster Bank began tracking the index in 2007. The previous highest rise came in 2009, just after another recession and cost of living crisis.
But there is some hope on the horizon as Mr Ramsey says while food inflation has been a real concern for households in recent times, these extremely high levels are likely to peak and ease with further signs of recovery coming to light within the agriculture sector.
The message of hope came at an event hosted by Ulster Bank ahead of its sponsorship of this year’s Balmoral Show which returns to Balmoral Park in 4 weeks’ time. During the breakfast briefing, senior figures from the bank provided updates on key issues facing the local agri-food sector.
Ulster Bank’s Head of NI, Mark Crimmins, said: "The agri-food sector is a crucial component of our local economy and as such, we remain strongly committed to supporting farmers throughout this period of economic unrest.
"We recognise the challenges they face with higher input costs, the damaging effects of inflation and even the variable weather but amid these challenges, a major transformation is under way, presenting new, exciting opportunities for this sector.
"As a leading financier of renewable energy projects, we want to work with growers and producers to help them shift towards more nature-friendly practices and examine how they might produce food while emitting less. We are therefore offering new green propositions including loans and green asset financing options for qualifying SMEs.
"All of our business managers now undergo specialist climate training and expertly positioned to assist customers on their sustainability journey in a way that places an equitable burden on the agri-sector."
Cormac McKervey, Senior Agriculture Manager, Ulster Bank, added: "Undoubtedly, farmers in Northern Ireland are going through a challenging period and facing undue pressure to produce affordable food against a backdrop of labour challenges and rising input costs. But, compared with where we were 12 months ago, there are a few glints of optimism."
Further information about the Ulster Fry Index is available at www.ulstereconomix.com.
READ NEXT:
DWP Cost of Living Payments exact date announced for those on tax credits
Daisy Hill Hospital: Councillors press for speedy electric upgrade for MRI.
Northern Ireland energy firms: How the costs compare following new April tariffs
For all the latest news, visit the Belfast Live homepage here and sign up to our daily newsletter here.
