Food and drink inflation nears 20% amid storm of cost pressures
Year-on-year price rises topped 10% in every food category of the September Index, with dairy and oils and fats the most inflationary segments
Inflation in food and drink prices hit a “record” high of 18.8% in September 2022, marking the eighth consecutive month of double-digit inflation, according to the latest CGA Prestige Foodservice Price Index.
After reaching 15% for the first time ever in August, the Index surged again during September, meaning that inflation has been in double digits in every month of 2022 since January.
Year-on-year price rises topped 10% in every food category of the September Index, with dairy and oils and fats the most inflationary segments. Other products for hospitality including meat, vegetables and fruit were all above 17%, with total food prices climbing 2.9% since August alone.
Additionally, food inflation is also rising in the retail sector, and the food category of the Consumer Price Index passed 10% for the first time in September, with fresh food climbing 13.3%.
The rate of general inflation across the wider economy and the impact of steady hikes in interest rates on consumers’ spending on eating out are also causing “significant” concerns amongst hospitality operators and suppliers.
Shaun Allen, Prestige Purchasing CEO, said: “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.”
James Ashurst, CGA by NielsenIQ client director, added: “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. 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.”
