Daily Mirror group Trinity Mirror today blamed the price of bread - as well as a litany of other economic reasons - for yet another dive in newpaper sales and its failure to attract advertisers.

The national and regional newspapers group revealed that circulation revenues fell by 1.2% while advertising sales had slumped by 4.3% during the first 17 weeks of 2008.

"The outlook for the UK economy remains uncertain with the ongoing adverse implications of inflationary cost pressures, in particular energy and essential food items, and the wider implications of the credit crunch," the group said in a trading statement. "These market conditions are adversely impacting consumer confidence and spending with the effect that businesses are curtailing marketing budgets to offset the prospect of slowing revenues.

"This has resulted in the advertising environment remaining difficult and volatile.

"Given this uncertain economic outlook for the UK, we remain cautious about trading prospects."

The group said car ads had collapsed by 16%, property advertising slumped 11.5% while recruitment was down nearly 5%.

Among its regional papers, led by the Birmingham Post and Liverpool Echo and including The Wharf newspaper in Docklands, the picture appears to be worsening.

Underlying advertising sales were down 4.6% in January and February, and 5.2% in March and April.

Advertising revenues at its national papers are down 2% but far worse in its Scottish editions, down 5.2%.

The group's borrowing has soared. Net debt at the end of April stood at £410 million compared with £248 million at the turn of the year.