The price of the Index’s overall basket of goods rose by 2.3% year-on-year and by 0.6% month-on-month, highlighting the ongoing challenges faced by businesses in managing their procurement costs.
The report indicates that a combination of global commodity market volatility, persistent supply chain disruptions, escalating energy costs, and the significant impact of adverse weather conditions are the primary drivers of these sustained price hikes.
Several categories have experienced significant increases, with Meat & Poultry category seeing rises affected by strong demand for beef and ongoing challenges in poultry production. The Oils & Fats category is also rising, influenced by high demand for soy and rapeseed oils, while the Mineral Water, Soft Drinks & Juices sector also saw higher levels of year-on-year inflation.
The Fish category, while showing a modest year-on-year increase of 0.4%, recorded a sharp 2.0% rise month-on-month. This is largely attributed to severe declines in hake stocks and significant quota reductions for cod in key fishing grounds, which are expected to lead to sustained high prices and a shift towards alternative whitefish species. Furthermore, the driest spring in a century has begun to impact root vegetable yields, indicating potential price increases later in the season for this category, which saw a 0.6% annual increase.
Shaun Allen, CEO of Prestige Purchasing, said: “The April data underscores the complex landscape our hospitality clients are navigating. While we’ve seen some seasonal variations, the underlying inflationary drivers remain firmly in place. Categories such as Meats, Oils & Fats and Soft Drinks are experiencing higher levels of inflation year-on-year, whilst critical staples like fish are seeing sharp month-on-month increases, driven by concerning stock declines and quota reductions. Whilst inflation has remained relatively low over the past 12 months, we are now seeing upward pressure coming through in a number of categories and it is important for operators to mitigate these impacts through strategic procurement and supply chain optimisation.”
Reuben Pullan, senior insight consultant at CGA by NIQ, said: “News of an uptick in key food and beverage costs in April is another unwelcome development for hospitality operators and their suppliers. Alongside a sharp increase in labour costs from April, it ratchets up the pressure on both profit margins and menu prices for consumers. Warmer weather has boosted trading in pubs in particular over the late Spring, but better government support is urgently needed to help the sector sustain investment and protect jobs.”
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/
