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Fish prices leap 23% as food inflation spikes

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Fish prices leap 23% as food inflation spikes

Foodservice price inflation grew 9.3% in August 2017, with the price of fish leaping 22.7% and double digit increases in oils, fat, milk, cheese and eggs.

The CGA Prestige Foodservice Price Index found that inflation has grown more than two percentage points from 7% in July, compared to 8.8% in June and 9.0% in May.

Fish saw the most extreme price hikes, rising 22.7% in August from 5% in July. On top of low exchange rates and high oil prices, stocks of salmon have been hit by ongoing lice problems, while availability of tuna was also said to be of concern.

The categories of oils, fat and milk, as well as cheese and eggs, also saw significant growth, with inflation at 15.4% and 14.7% respectively.

However, meat prices fell to a four month low, though it is still more expensive than in August 2016.

Only sugar and confectionery saw a price reduction, with prices dropping 2.1%.
The report predicts little slowdown in price inflation in the coming months, with the price of fruit and vegetables also expected to come under pressure due to the weak pound and labour shortages exacerbated by Brexit.

Christopher Clare, head of consulting and insight at Prestige Purchasing, said: “We are now experiencing the highest year on year movement since the index began. We have seen high increases in nearly every category compounded by a weak pound and a number of supply issues in key categories.”

CGA Commercial Director Graeme Loudon added: “The weak pound and increased oil costs are both conspiring against UK businesses, and specific categories of food and drink are facing added challenges like weather-related production issues and changing trading patterns.”

The CGA Prestige Foodservice Price based on data drawn from 7.8m transactions per month.

How to… cut costs, not your profits >>

Britain’s pub, bar and restaurant groups record flat August trading >>

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