Hospitality food and drink price inflation edges closer to 20%
Inflation rose to 18.8% in September, according to the latest Foodservice Price Index by CGA and Prestige Purchasing, up from 15% in August, which was the previous record high in the history of the index.
The figure means that inflation has been in double digits in every month of 2022 since January.
All food categories monitored by the index are now in double-digit inflation, with year-on-year price rises topping 10% in every food category. Dairy, along with oils and fats, are among the ingredients most affected by price increases.
Other core products, including meat, vegetables, and fruit, were all above 17%, with total food prices rising 2.9% since August.
“The speed of price rises from suppliers to the hospitality sector continues to increase, and there is little that we can see in the months ahead that will change that,” says Prestige Purchasing CEO Shaun Allen.
“Inflation has well and truly taken root in our supply chains, and whilst we do expect prices to rise more slowly in 2023 we believe we will still be seeing significant levels of inflation for most of next year. With so many other pressures it would be easy for operators to take the eye off the ball of managing supply prices, which in this market could be very costly.”
Inflation is expected to continue to remain high for the foreseeable future with the continued vulnerability of the Black Sea grain corridor deal with Russia continuing to place upwards pressure on pricing.
“Hospitality is besieged by the biggest challenges that many in the sector can remember. News that inflation is closing in on 20% will deal another heavy blow to the confidence of businesses and consumers alike, and there is no respite in sight,” James Ashurst, client director at CGA.
“Britain’s best restaurants, pubs and bars still have a bright future, but thousands of businesses weakened by two years of Covid-19 are now extremely fragile. Government support is desperately needed to sustain them through this storm.”
