It is the 14th straight month of decline, as prices continue to stabilise after a prolonged period of aggressive inflation. However, the report also reveals a 0.5% month-on-month increase in prices across the basket of goods—a third consecutive rise.
This uptick was primarily fuelled by the Beverage category (not including alcoholic beverages), with total inflation here reaching 5.8% year-on-year. The Mineral Waters, Soft Drinks & Juices segment recorded a particularly steep increase of 6.7%, while the Tea, Coffee & Cocoa category remained elevated at 4.7%.
In contrast, total food basket prices experienced a more moderate inflation rate of 2.5%. Two of the eight food categories saw year-on-year decreases, with Dairy falling by 0.3% and Oils & Fats by 1.2%. The Vegetables and Sugar, Jam, Syrups & Chocolate categories generated the highest inflation, rising 9.1% and 8.2% respectively—though these figures represent a slight easing from July.
Shaun Allen, Prestige Purchasing CEO, commented: “The sustained downward trajectory of foodservice inflation is undoubtedly positive, but the persistent month-on-month increases and stubbornly high inflation in certain categories, particularly beverages, underscore the fragility of the current market. Operators need to maintain a proactive and adaptable approach to procurement to navigate these choppy waters.”
Reuben Pullan, senior insight consultant at CGA by NIQ, added: “Several years of spiralling prices have been very difficult for hospitality, and there has been widespread relief at the steady retreat. Nevertheless, foodservice inflation remains above many other sectors, and an upswing over the summer shows the challenges are far from over. While some other costs continue to ease for businesses and consumers alike, both revenue and margins are likely to remain under pressure over the final third of 2024.”
Reuben Pullan, senior insight consultant at CGA by NIQ, added: “Several years of spiralling prices have been very difficult for hospitality, and there has been widespread relief at the steady retreat. Nevertheless, foodservice inflation remains above many other sectors, and an upswing over the summer shows the challenges are far from over. While some other costs continue to ease for businesses and consumers alike, both revenue and margins are likely to remain under pressure over the final third of 2024.”
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/
