Foodservice prices are stabilising, according to index

Year-on-year foodservice inflation has fallen to 4.6% – the lowest figure in 28 months, according to the Foodservice Price Index compiled by Prestige Purchasing and CGA by NIQ.

May also saw month-on-month deflation of -0.4%, the fourth decrease in the past two and a half years.

The report indicated further stability of food prices and a return towards pre-pandemic levels of inflation.

Basket prices fell month-on-month for six of the index’s 10 categories, including oils and fats, which has delivered six consecutive months of year-on-year deflation.

Shaun Allen, chief executive of Prestige Purchasing, said: “This fall of input-inflation is very welcome, as the full basket of consumer price index has also fallen sharply to 2% year-on-year, and diners will soon come to expect stable pricing again in our restaurants. Buyers should be particularly wary of proposed supplier increases in this period of sharply falling inflation.”

Reuben Pullan, senior insight consultant at CGA by NIQ, added: “After several years of relentlessly high inflation, these figures show some very welcome respite. While some rates remain higher than businesses would like, the general stability makes it much easier to plan for the future. In turn it should also reassure consumers, who have seen food and drink menu prices rise sharply but will hopefully become more confident with their spending as we move towards the second half of the year.”

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