Foodservice prices rise 1% in December as inflation concerns mount

Foodservice prices rose by 1% from November to December – the highest monthly jump since June 2024 – raising fears of renewed price pressures for the UK’s hospitality sector.

While year-on-year inflation dropped to 1.9% in the final month of 2024, the latest Foodservice Price Index report from Prestige Purchasing and CGA by NIQ revealed that all 10 categories of the index recorded month-on-month inflation.  

Some categories showed continued easing in their year-on-year inflation rates, with vegetables (+3%) and sugar, jam, syrups and chocolate (+3.5%) seeing significant declines. 

However, oils and fats emerged as a category of concern as it saw an inflation rise of 5.7%. 

Fish (-1.2%) remained the only category with year-on-year deflation. 

Prestige Purchasing and CGA by NIQ warned that disruptions to global supply chains and fluctuations in commodity prices could exacerbate inflationary pressures and create additional challenges for the hospitality sector. 

Shaun Allen, CEO of Prestige Purchasing, said: “This month’s figures are a reminder that the battle against inflation is far from over. While we’ve seen encouraging progress in the year-on-year trend, the month-on-month increase is a reminder we must stay vigilant. 

“The potential impact of the autumn budget, combined with these latest figures, suggests that we could be facing a renewed inflationary challenge in 2025.”

Reuben Pullan, senior insight consultant at CGA by NIQ, added: “After a solid end to 2024 for hospitality sales, news of renewed foodservice inflation is a concerning start to this year. On top of other pressures including increased international economic uncertainty, National Insurance rises, and hesitant consumer confidence, an upswing in prices will squeeze operators’ margins even tighter. 

“The inflationary threat is another reason why hospitality needs more support from the government so businesses can invest, create jobs and drive growth.”