Year-on-year inflation in foodservice eased to 2.8% in August 2024, the latest Foodservice Price Index (FPI) report from Prestige Purchasing and CGA by NIQ shows.
It is the 14th straight month of decline, as prices continue to stabilise after a prolonged period of aggressive inflation.
However, the report also reveals a 0.5% month-on-month increase in prices across the basket of goods—a third consecutive rise.
This uptick was primarily fuelled by the beverage category (not including alcoholic beverages), with total inflation here reaching 5.8% year-on-year.
The mineral waters, soft drinks & juices segment recorded a particularly steep increase of 6.7%, while the tea, coffee & cocoa category remained elevated at 4.7%.
In contrast, total food basket prices experienced a more moderate inflation rate of 2.5%. Two of the eight food categories saw year-on-year decreases, with dairy falling by 0.3% and oils & fats by 1.2%. The vegetables and sugar, jam, syrups & chocolate categories generated the highest inflation, rising 9.1% and 8.2% respectively—though these figures represent a slight easing from July.
Shaun Allen, Prestige Purchasing CEO, commented: “The sustained downward trajectory of foodservice inflation is undoubtedly positive, but the persistent month-on-month increases and stubbornly high inflation in certain categories, particularly beverages, underscore the fragility of the current market. Operators need to maintain a proactive and adaptable approach to procurement to navigate these choppy waters.”
Reuben Pullan, senior insight consultant at CGA by NIQ, added: “Several years of spiralling prices have been very difficult for hospitality, and there has been widespread relief at the steady retreat. Nevertheless, foodservice inflation remains above many other sectors, and an upswing over the summer shows the challenges are far from over. While some other costs continue to ease for businesses and consumers alike, both revenue and margins are likely to remain under pressure over the final third of 2024.”
