Year-on-year inflation dropped to 1.9% in the final month of 2024, but prices rose by 1.0% from November—the highest monthly jump since June 2024. In a marked shift from the previous two months, all 10 categories of the Index recorded month-on-month inflation. The breadth of increases suggests that inflationary pressures are becoming more widespread across the foodservice sector.
More positively, some categories showed continued easing in their year-on-year inflation rates. Vegetables (+3.0%) and Sugar, Jam, Syrups & Chocolate (+3.5%) saw significant declines—but Oils & Fats (+5.7%) emerged as a category of concern. Fish (-1.2%) remained the only category with year-on-year deflation.
The December FPI report from Prestige and CGA highlights ongoing volatility and uncertainty in the foodservice market, and the need for operators to remain vigilant and closely monitor price trends across all categories. Adding to the complexity, the current threat of an international trade war introduces further uncertainty into the market. Disruptions to global supply chains and fluctuations in commodity prices could exacerbate inflationary pressures and create additional challenges for the hospitality sector. Proactive measures and flexible procurement strategies will be crucial to navigate these challenges and mitigate the impact of potential price increases on businesses and consumers.
Shaun Allen, Prestige Purchasing CEO, commented: “This month’s figures are a reminder that the battle against inflation is far from over. While we’ve seen encouraging progress in the year-on-year trend, the month-on-month increase is a reminder we must stay vigilant. The potential impact of the Autumn Budget, combined with these latest figures, suggests that we could be facing a renewed inflationary challenge in 2025.”
Reuben Pullan, senior insight consultant at CGA by NIQ, said: “After a solid end to 2024 for hospitality sales, news of renewed foodservice inflation is a concerning start to this year. On top of other pressures including increased international economic uncertainty, National Insurance rises, and hesitant consumer confidence, an upswing in prices will squeeze operators’ margins even tighter. The inflationary threat is another reason why hospitality needs more support from government so businesses can invest, create jobs and drive growth.”
Reuben Pullan, senior insight consultant at CGA by NIQ, said: “After a solid end to 2024 for hospitality sales, news of renewed foodservice inflation is a concerning start to this year. On top of other pressures including increased international economic uncertainty, National Insurance rises, and hesitant consumer confidence, an upswing in prices will squeeze operators’ margins even tighter. The inflationary threat is another reason why hospitality needs more support from government so businesses can invest, create jobs and drive growth.”
The exclusive Foodservice Price Index is jointly produced by Prestige Purchasing and CGA by NIQ, using foodservice data drawn from 10.7m transactions per month. It contains myriad insights and information pertinent to the foodservice sector and is essential reading for anyone seeking to keep ahead of price trends and understand why they occur. More information on specific categories is available on a subscription basis. For further information, contact Prestige Purchasing on 01908 222678 or stuart.read@prestige-purchasing.com.
Visit the new Foodservice Price Index Digital Portal. The new online hub gives users on-demand access to accurate pricing data, with an array of features to interpret trends and improve decision-making. Find out more: https://prestige-purchasing.com/foodservice-price-index-fpi/
