Food prices start to slow down

By Emma Eversham , 19-Sep-2008

Related topics: Trends & Reports

Food costs rose by 0.8 per cent in August, compared with 3.1 per cent in July, indicating a much-awaited slowdown.

The cost of food rose by just 0.8 per cent in August, indicating that we may at last be seeing a slowdown.


Over the past year, food costs have grown by almost 14 per cent, with prices rising by 3.1 per cent in July alone.


According to foodservice analyst Horizons, the slowdown in the rate of growth is due to a number of factors including the stability of the pound against the Euro, a good harvest for some commodities and the fact world commodity prices are beginning to be readjusted.


Peter Backman, Managing Director of Horizons said: “While foodservice operators increased their prices to consumers slightly in August, since the beginning of the year they have raised prices by one-third of the level of food price inflation.


“This means that operators have clearly been absorbing much of these increased costs to avoid frightening off increasingly edgy customers with significant price rises."


Backman warned that the industry would still need to implement measures to mitigate cost increases such as reducing portion sizes, buying more cost-effectively and using cheaper cuts of meat .


"We are still in a period of economic instability and while the eating out market has yet to be significantly hit, the run-up to Christmas could see consumers tightening their belts even further,” he said.


Mark Poynton: Pearls of Wisdom

Mark Poynton: Pearls of Wisdom

The British chef-patron of the Michelin-starred Alimentum and star of Great British Menu Mark Poynton talks about...

Interview with Glendola Leisure's Alexander Salussolia
Small Talk

Alexander Salussolia on Silk & Grain, market niches and nurturing future talent

Managing director of Glendola Leisure Alexander Salussolia joined the company in 1992 as an area manager, before...

60-Second Skill: Using #foodporn to your advantage

60-Second Skill: Using #foodporn to your advantage

Customers posting pictures of your food on social media is a trend you can't escape, but by...

Gallery: the UK’s first experiential craft brewery Drygate Brewing Co.

Gallery: the UK’s first experiential craft brewery

New Glasgow venture Drygate Brewing Co. claims to be the UK’s first experiential craft brewery, offering a...

Hospitality Openings: June 2014

Hospitality Openings: June 2014

Our latest round of up of the hottest hospitality openings includes Heston Blumenthal’s Heathrow venture The Perfectionists’ Café,...

60-Second Skill: Pouring champagne

60-Second Skill: Pouring champagne

As demonstrated at the Moet UK Sommelier of the Year competition, champagne pouring requires skills and knowledge....

Find us on Facebook

Digital Edition - Restaurant Magazine

Access to the Restaurant Magazine digital edition