Inflation as measured by the CGA Prestige Foodservice Price Index (FPI) fell below 10% in March for the first time in two years. The welcome milestone for the sector follows the largest month-on-month decline ever recorded by the Index of 1.4%.

Food price inflation in hospitality remains more than double the rate seen in the retail sector despite steady easing over the last 12 months, the new edition of the CGA Prestige Foodservice Price Index reveals.

The CGA Prestige Foodservice Price Index recorded year-on-year inflation of 12.6% in January—a drop of 1.2 percentage points from December’s rate of 13.8%. It is the seventh successive month-on-month fall in inflation as markets adjust to falling commodity pricing.

The majority of Index categories maintained double-digit year-on-year inflation in December, and the Vegetables category recorded a rate above 20%, primarily driven by substantial increases in potato prices. Only one category, Oils & Fats, achieved deflation, with a 1.1% year-on-year decrease.

Inflation as measured by the CGA Prestige Foodservice Price Index (FPI) fell again during the month of November to 15.0% – its lowest level since July 2022.