Which holiday cakes are worth the money?

Hot cakes, baked goods and desserts are all worth the dough when it comes to the holiday season, according to a new study by financial consultancy Deloitte.

The firm said that as a whole, the cost of cakes and pastries had increased by around 10 per cent since 2011, which means the average cost per piece of cake has increased by more than $200 since that time.

In the past 12 months, the average price per pound of cake, pastries and baked goods rose by around 20 per cent, according the report, which was released on Thursday.

Its researchers calculated that a basket of cakes, pasties and baked products will cost $180,000 to $230,000 when the price of goods is adjusted for inflation.

“This is the highest price we have ever seen in a year,” said Paul Wurster, Deloittes chief economist, in a statement.

Deloitte’s research has been carried out for the past three years, and it surveyed more than 6,500 people across Australia.

The firm’s analysis showed the cost per unit of product rose by a total of $1,500 per person over the same period, with the biggest price increases coming from cakes, including $6,000 for the average size cake.

“The rising cost of baked goods is not only the main cause of this rise in the cost but it is also the main reason why the cost has increased so much over the past year,” Mr Wurst, said.

Other factors that led to the price rises included higher food prices, which led to an increase in food spending, and a “friction of supply” among retailers, the firm added.

The cost of cake increased by $8.6 billion, or about 3 per cent a year, while pastries increased by about $4.2 billion, which is around 2 per cent.

In contrast, food and drink prices dropped by $5.2 per cent over the year.

Food prices are rising across the board across the country, but Australia is the only country where prices are still rising, DelOitte said.

“These are not the price pressures that we would expect in a world where people can buy more food and more food is being consumed more frequently,” Mr Visser said.

Deloittles chief executive officer, Paul Wurtster, said the cost increase in cake, including the rise in prices, was due to the increased availability of cheaper and healthier food.

But the rise was also a reflection of how quickly cakes and cakes have become a household staple.

“A lot of people are buying cakes, cakes that they think are expensive, cakes they would never eat,” he said.

Mr Wurtsten said there were a number of factors that were driving the price increases.

He said people were also finding it harder to find affordable foods in supermarket outlets.

“There is a lot of pressure on the retailers to increase prices,” Mr Wilson said.

He said the higher prices were largely due to increased availability.

“We know that people who buy cakes are more likely to go to the supermarket,” he added.

“If you’re buying cakes for the first time, you’re going to pay more than people who have bought cakes for a longer period of time.”

Mr Wursta said there was no doubt that cakes and baked foods were more expensive, but there was little research into how much more expensive cakes were.

“It’s certainly true that the cakes that we’re talking about are now significantly more expensive,” he told the ABC.

For more news on the economy, go to our jobs section.

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