May inflation rate 'frustrating' for industry

The inflation rate remained “stubbornly high” at 8.7% in the 12 months to May 2023, according to the latest figures from the Office for National Statistics (ONS).

Food and non-alcoholic beverage prices increased by 18.4.% in the year to May 2023, down from 19.1% in April and 19.2% in March, which was the highest annual rate seen for over 45 years.

Milk, cheese and eggs provided the largest downward contribution to the slight easing in prices, with the annual rate falling from 29.3% in April to 27.4%.

Fish prices jumped from 14.2% in the year to April 2023 to 16.6% in the year to May after a rise in the price of canned tuna this year.

More expensive air travel, recreational and cultural goods and services continued to push monthly CPI rates, with figures increasing by 0.7% in May 2023.

Kate Nicholls, chief executive of UKHospitality, said: “It’s frustrating to see that the rate of inflation remains stubbornly high, with no decrease since last month’s figures. It’s clear that the ongoing high costs of doing business being passed on in prices is a contributory factor and this needs to be tackled with urgency.

“Measures to tackle sky-high energy costs, bring down the cost of food and drink, and ease ongoing worker shortages would be effective measures to bring down the cost of doing business, and in turn help reduce inflation.”

Kate Vacovec, chief financial officer at Pizza Hut UK & Europe, added: “While today’s figures show that food inflation has dropped to 18.4% compared to 19.1% in April – this is not enough for hospitality businesses to continue operating in confidence.

“We’re calling on the government to recognise how integral our industry is for the British economy. That’s why more additional relief on bills for hospitality businesses will be critical, so businesses like ours can better balance the multiple cost burdens we are facing.”