Foodservice inflation hits highest level for nine years
Wholesale foodservice inflation hit 9% in May, the highest level for nearly nine year, according to the CGA Prestige Foodservice Price Index.
The weak pound, together with rising fruit and dairy costs, resulted in foodservice inflation leaping from the 5.8% figure recorded in April, making it the sharpest rise in prices since August 2008.
Foodservice inflation is now more than four times as high as the 2% inflation rate in the equivalent Consumer Price Index.
Poor weather and disease in some growing regions of the Europe have pushed fruit inflation prices up to 12.7%, while low stocks and a rise in global demand have resulted in 9.9% inflation among dairy products.
Political uncertainty in the UK surrounding Brexit negotiations and the General Election, combined with fluctuating oil prices, have also contributed to inflationary foodservice pressures.
The CGA Prestige Foodservice Price Index is jointly produced by procurement company Prestige Purchasing and business intelligence group CGA Strategy, using data drawn from over 50% of the foodservice market and around 7.8 million transactions per month.
Price inflation in foodservice hits 5.8% >>
Foodservice price inflation climbs to 6% in March >>
Foodservice price inflation hits 3.7% in February >>
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