Hospitality food and drink prices rise again amid global pressures
However, the vegetables category bucked the general trend with a slight year-on-year reduction of 1.2% due to an expanded European potato crop, although other items like leafy greens are still facing upward pressure
Register to get 1 free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
The UK foodservice sector saw a significant resurgence of inflationary pressures in June 2025, with nine out of 10 categories seeing month-on-month inflation, according to data from CGA.
The oils and fats category has been hit particularly hard, with prices rising 6.7% over the last year and by 1.6% in July alone. Palm, soy and sunflower oil prices all surged due to strong demand and tightening supplies.
Furthermore, the coffee, tea and cocoa category saw prices soar 9.2% year-on-year. This is primarily a result of tight global availability of Robusta coffee beans, following drought in Vietnam and ongoing volatility in the cocoa market.
Meanwhile, meat and poultry prices rose 4.0% year-on-year, with poultry consumption outpacing production and turkey supplies for the festive season already at typical Christmas price levels.
However, the vegetables category bucked the general trend with a slight year-on-year reduction of 1.2% due to an expanded European potato crop, although other items like leafy greens are still facing upward pressure.
The fish category also recorded a monthly price dip, despite severe supply pressures on core whitefish species like cod and haddock, with the latter’s prices having doubled compared to last year.
Shaun Allen, CEO of Prestige Purchasing, said: “The industry is navigating a persistent inflationary climate, with a mix of factors including climatic events, geopolitical issues, and challenges in labour and logistics all contributing to cost pressures.
“Businesses that remain agile and proactively review their sourcing strategies will be best positioned to mitigate the impact of this volatility and ensure long-term supply chain resilience.”
Reuben Pullan, senior insight consultant at CGA by NIQ, added: “There has been little respite in inflation for hospitality businesses in 2025, and all figures point to yet more cost rises through to the crucial end-of-year trading period.
“Global and local supply and demand issues are putting major stress on prices, and businesses will have to work very hard to mitigate rises. They face the tough challenge of providing consumers with good value for money without compromising quality.”
