Foodservice price inflation falls to lowest level since August 2022

The figures show inflation across the FPI dipped below 20% year-on-year (YOY) to 16.7%. 

However, CGA notes that there remains a marked contrast between FPI and the measure of supermarket pricing (CPI), which is now rising at roughly half the rate (8.5%) year-on-year.

October also marked the first month-on-month fall in FPI since September 2021. 

“The downward movement in foodservice price inflation is starting to build momentum, and we can optimistic that pressures will ease further for businesses and consumers alike in 2024,” says James Ashurst, client director at CGA by NIQ.

“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.”

In October, FPI saw just one category (oils and fats) perform below 10% inflation at 4%, but this was in stark contrast to vegetables where inflation remained extremely high at 30%.

Overall, inflation within FPI has fallen 6.2% pts since its peak of 22.9% in December 2022.
“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,” says Shaun Allen, Prestige Purchasing CEO.

“As of today, the journey down to normal levels of inflation (about 1% to 3%) is only about one-third complete.”