Business set to ‘feel the heat’ on food prices ‘for some time to come’

The CGA Prestige Foodservice Price Index (FPI) shows that inflation fell for the six consecutive month in November, dropping to 15% - its lowest level since July 2022.

However, the FPI notes that the speed of that fall is much slower than the equivalent rise to the 22.9% peak reported in December 2022.

While it took just four months to rise from 15% to the peak, it has subsequently taken 11 months to fall back to that level.

“After such rapid rises in inflation in recent times, it’s frustrating to see a much slower journey back towards more normal levels,” says James Ashurst, client director at CGA by NIQ.

“The general UK rate of inflation may be coming down, but businesses across the food supply chain will be feeling the heat on prices for some time to come.”

In November, the FPI saw just two categories (oils and fats at 1.4%, and dairy at 8.8%) performing below 10% year-on-year.

This was in stark contrast to vegetables where inflation remained extremely high at 27.3%.

Ashurst adds that the high rises in the cost of vegetables are particularly concerning coming into the new year.