Gap between Consumer Price Index (CPI) and Foodservice Inflation (FPI) doubles to 4%

Foodservice is at the leading edge of inflation, as gap between Consumer Price Index (CPI) and Foodservice Inflation (FPI) doubles to 4%.

Foodservice operators and caterers are on the front line of rising inflation, warn experts Prestige Purchasing today. While the latest Consumer Price Index (CPI) figures indicate prices more than 2% lower than last year, the Foodservice Price Index (FPI), published by Prestige Purchasing and CGA Strategy, has found the foodservice sector is experiencing supply prices almost 2% higher than last year.

The Foodservice Price Index (FPI) was independently developed by Prestige Purchasing and CGA Strategy specifically for the foodservice and catering sector as a more accurate and relevant alternative to the government’s Consumer Price Index (CPI). FPI analysed over four million lines of data points a month over the last two years which allows foodservice operators to more accurately track their performance vs food inflation. 

In comparing CPI to FPI finds, the inflation gap has increased 2% in the past 12 months, as agricultural and political factors have hit supply, and aggressive supermarket discounting continues, supressing CPI figures.

David Read, Chief Executive of Prestige Purchasing warns, “Despite what CPI is showing, we’re seeing a noticeable rise in inflation for foodservice operators, and the widening gap between CPI and FPI is one of the many huge challenges operators are facing. While consumers are protected somewhat by the continued supermarket price wars, political and agricultural supply issues have led to a ‘perfect storm’ which are driving prices up.

“For some contract caterers this problem is further compounded by clauses that benchmark budgets to CPI. Our message to those that do have these clauses, is to review them immediately and link them to the true cost of supply for operators.

“There has never been a time when more accurate pricing data is needed in our industry. Looking to 2017, the Trump presidency, the triggering of Article 50, a restriction on oil production, and Russian sanctions are just some of the headline factors that will affect inflation – it is this that has prompted our organisations to collaborate and develop the only industry specific index that will allow foodservice operators to track their performance vs food inflation in our industry”.

“It is a turbulent time in food pricing, and we are pleased to offer operators some practical help via this new Foodservice Price Index with Prestige. With so many macro and micro economic factors impacting on the food supply chain at the moment, there are significant issues for both supply- and consumer-side pricing—but smart operators will find ways to mitigate the extra costs and grow their market share. This Index gives them the tools they need to track food pricing, monitor their performance and protect their margins.”

— Phil Tate, CEO, CGA Strategy

Among the most affected food categories are:

  • Salmon – Chilean supply was badly hit thanks to problems with disease, putting greater pressure on the price of salmon from Norway and Scotland. The rising Norwegian currency also means salmon is more expensive for the UK.  
  • Alcohol – imported alcohol is more expensive because of the falling pound
  • Chocolate and coffee – demand continues to outstrip supply, which is hindered by global warming
  • Avocados – the rise in popularity, driven by social media posts and ‘hipster’ culture has led to increased demand on a limited supply

The headline FPI figure will be released each month via the Prestige Purchasing News Bites newsletter, and more detailed information will be available to purchase via a subscription based offer to be launched at the Prestige Purchasing Food Inflation Event on the 5th December 2016 at The Brewery, Central London. 

For further information about FPI, and details about how to sign up to the monthly News Bites email newsletter please contact Prestige Purchasing or

For further information, interviews or images, contact Nil Khalifa at

About Prestige Purchasing

Prestige Purchasing, is one of the UK’s leading specialists in procurement and supply chain management for the hospitality, catering, leisure, retail and private healthcare sectors.

About CGA Strategy

CGA Strategy is the leading expert in market dynamics and analysis for the UK’s out of home drinking and eating markets. To learn more, call 0161 476 8330 or visit

Recent posts:

Share post


Subscribe to our newsletter

Access the latest On Premise news and reports by signing up below.