Eating out prices rise at twice the rate of food in shops

30 December 2005
Eating out prices rise at twice the rate of food in shops

Prices at restaurants and other foodservice outlets have increased at more than twice the rate of food prices in general in the last five years, says a study by market analysts Horizons.

Inflation in eating out prices has shown an aggregate growth of 16% since the start of 2001, it reports.

This compares with overall inflation of 6% and food price inflation of 7%, according to Horizons.

Despite the increased cost, consumers have continued to spend the same proportion of their income on eating out. Eating out accounted for 8.4% of spending in 2001-03 and is now at 8.3%.

Food purchases by consumers in the foodservice sector grew from £24.3b in 2001 to an estimated £26.6b in 2005 - an increase of £2.3b.

But once inflation is taken into account, the increase is just £600m, or 2.5%.

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