The latest CGA Prestige Foodservice Price Index has revealed that Foodservice price inflation rose to 5.1% in December – a sign of continued market volatility in the face of earlier indications that some pressures were easing.
– An increase on the November index, which at 3.4% had been the lowest since early 2017
– Sector inflation is once more above the wider Consumer Price Index level.
– Inflation running high in most of the 10 food and beverage categories
Notable Category Findings
Fish: Substantial inflation due to increasing demand, a strengthening of the Krone (Norway’s currency) and uncertainty over future UK fishing quotas.
Oils & Fats: Prices being driven by increasing demand and the impact of the La Nina Weather Phenomenon
Poultry: Uncertainty of supply is developing because of bird flu
Meat: Pressure has been increased because of the recent controversy surrounding Russell Hume, who had been supplying the Wetherspoon’s chain.
Soft Drinks: The upcoming April introduction of the sugar tax levy is impacting the category.
– Rising oil prices and category specific supply issues will off-set further pricing drops
– Index underlines the importance of staying on top of price trends for all Foodservice industry businesses
The CGA Prestige Foodservice Price Index is jointly produced by Prestige Purchasing and CGA.