Fish prices leap 23% as food inflation spikes

02 October 2017 by
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 >>

On-trade alcohol sales continue to fall due rising prices >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking