Food prices rise by a fifth in just 12 months

The CGA food price index has continued to rise with food price inflation hitting 19.9% for October 2022, making it nine consecutive months of double digit inflation.

Core hospitality products like meat, fish, vegetables and fruit are now all in the 16%-to-19% range year-on-year. Food in total climbed a further 1.3% month-on-month during October and is now running at 21% inflation year-on-year.

Oils and fats were the items that rose the most with an increase of almost 50% YOY. The prices of dairy products slightly fell but still rose more than 30% compared to October 2021.

Sugar, jams and syrups are the only category to not rise by double digits, their inflation rate coming in at 9.6%.

October showed some signs that price-influencing factors occurring upstream of delivery are beginning to normalise, with oil prices, exchange rates and commodity markets all showing increasing stability.

Shaun Allen, Prestige Purchasing CEO, said: “The coming months will be extremely tough for hospitality operators. They will be caught in the squeeze between rapidly rising costs of operation, and diners seeking even more value as a result of the cost-of-living crisis.

“Riding out this storm requires investment in supply chain management, as in the hands of skilled professionals price increases can and should be avoided and mitigated.”

James Ashurst, client director at CGA by NielsenIQ, added: “Soaring costs are making trading exceptionally challenging across the supply chain, and eye-watering inflation in several key categories will hit sales and margins again over the crucial Christmas season.

“While it’s encouraging to see some signs of inflationary respite as we move into 2023, it is clear that our sector needs targeted government support to get through these unprecedented challenges.”