Food prices rise by a fifth in just 12 months

The CGA Prestige Foodservice Price Index (FPI) continued its relentless upward march again during October to hit 19.9%—a ninth consecutive month of double-digit inflation.
Download the FPI Snapshot report

As in previous months Oils and Fats led the way, rising almost 50% year-on-year. Prices in the Milk, Cheese and Eggs category fell slightly in the month, but still increased by more than 30% compared to October 2021.

 

Only one category within the Index is not in double digit-inflation, with Sugar, Jams and Syrups the outlier at 9.6%. Core products for hospitality such as Meat, Fish, Vegetables and Fruit are now all in the 16%-to-19% range year-on-year. Food in total climbed a further 1.3% month-on-month during October and is now running at 21% inflation year-on-year.

 

There were some signs during October that price-influencing factors occurring upstream of delivery are beginning to normalise, with oil prices, exchange rates and commodity markets all showing increasing stability.

 

Prestige Purchasing CEO Shaun Allen said: “The coming months will be extremely tough for hospitality operators. They will be caught in the squeeze between rapidly rising costs of operation, and diners seeking even more value as a result of the cost-of-living crisis. Riding out this storm requires investment in supply chain management, as in the hands of skilled professionals price increases can and should be avoided and mitigated.”

 

James Ashurst, client director at CGA by NielsenIQ, said: “Soaring costs are making trading exceptionally challenging across the supply chain, and eye-watering inflation in several key categories will hit sales and margins again over the crucial Christmas season. While it’s encouraging to see some signs of inflationary respite as we move into 2023, it is clear that our sector needs targeted government support to get through these unprecedented challenges.”

 

The exclusive Foodservice Price Index is jointly produced by Prestige Purchasing and CGA by NielsenIQ, using foodservice data drawn from 7.8m 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/

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