Ingredient prices have fallen to their lowest rate since April 2019, providing caterers with the opportunity to increase margins, according to CGA and Prestige Purchasing's Foodservice Price Index (FPI).
The index, which tracks prices across the foodservice sector, also forecasts further drops in the next few months.
Prestige Purchasing's chief operating officer, Phil McGuinness, said: "The slowing of inflation should provide some reassurance to purchasers for the year ahead.
"With 2020 looking likely to bring falls in multiple categories, along with certainty around Brexit bringing 12 months of stability, we are likely to see further reductions within the index, which can be used to maximise margin or drive sales."
Favourable weather conditions have also seen to high yields of seasonal vegetables including potatoes and onions which have caused the vegetable price index to fall both month-on-month and year-on-year.
However, a low yield of citrus fruit for Spanish farmers, down between 60% and 80%, resulted in sharp price increases and year-on-year inflation of 16.2% in November.
CGA client director of food and retail Fiona Speakman added: "It's particularly pleasing to see an easing of inflation in the vegetable category, but rising fruit prices and the imminence of Brexit are reminders of the need to stay vigilant on trends and purchasing strategies in 2020."
The exclusive Foodservice Price Index is jointly produced by Prestige Purchasing and CGA, using foodservice data drawn from 7.8m transactions per month.