Foodservice inflation decreases for fifth consecutive month

Inflation in foodservice decreased for the fifth consecutive month in October, reaching its lowest level since August 2022.

According to the CGA Prestige Foodservice Price Index (FPI), inflation last month was 16.7%. This still compares unfavourably to supermarket pricing, which is rising at around half the rate (8.5%) year-on-year.

Only oils and fats fell below 10% inflation at 4%, which was in contrast to vegetables, which hit 30% after storms and floods affected supplies.

Overall, inflation within FPI has fallen 6.2 percentage points since its peak of 22.9% (year-on-year) in December 2022.

Shaun Allen, chief executive of Prestige Purchasing, said: “The Foodservice Price Index has risen by 40% over the past 24 months, and with inflation still at 16.7% the compound effects of these continued high numbers need to be carefully monitored and managed. As of today, the journey down to normal levels of inflation (about 1% to 3%) is only about one-third complete.”

James Ashurst, client director at CGA by NIQ, added: “The downward movement in foodservice price inflation is starting to build momentum, and we are optimistic that pressures will ease further for businesses and consumers alike in 2024. Nevertheless, rates remain very high and continue to put strain on prices and profits. The long-term outlook for those in the foodservice chain remains good, but we are not out of the woods yet.”

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