Foodservice price inflation soars past 20%
The cost of oil fell in November from $93 (£76) to $82 (£67) per barrel, while Sterling was stable against the Euro and Dollar
The CGA foodservice price index has seen inflation reach a record 21.5%, the first time in history it has surpassed 20%.
This is the 10th consecutive month of double digit inflation and every category in the index recorded double digit inflation.
Oils and fats remained at unprecedented levels, reporting a figure of 47% year-on-year. The vegetables category rose nearly 4% month-on-month to register year-on-year inflation of 23%.
However, CGA believes that there is some evidence to suggest that the “heat may be dissipating” in this sector, with month-on-month increases moderating from earlier highs.
Alongside this the CGA said that the major upstream influencers on the price of food, including oil, exchange rates and volatile commodity markets, are now showing some signs of stabilising.
The cost of oil fell in November from $93 (£76) to $82 (£67) per barrel, while Sterling was stable against the Euro and Dollar.
Shaun Allen, Prestige Purchasing CEO, said: “We expect inflation to begin to level off in December, with a gradual decline commencing in the New Year as the impacts of the less challenging upstream influences and year-on-year effects begin to feed through into the Index. Nevertheless, the average monthly increase in prices during 2022 has been 1.7%, so inflation has a long way to fall before prices (rather than inflation) can start to come down.”
James Ashurst, client director at CGA by NielsenIQ, added: “These latest figures cap an exceptionally challenging year for the food supply chain and the hospitality sector. Alongside labour shortages and the cost-of-living crisis, high inflation has placed intense pressure on operators’ margins and made real-terms growth extremely difficult. Businesses across the industry will be holding their breath for respite in 2023.”
