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

Food price inflation falls to 7%

30 August 2017 by
Food price inflation falls to 7%

Food price inflation fell to 7% in the 12 months to July 2017, down from a high of 9% in May.

That's according to the latest edition of the CGA Prestige Foodservice Price Index.

The index revealed that prices in some categories are starting to come down slightly, although in other key sectors the trend is still up.

Inflation in wholesale foodservice prices in July 2017 fell from its previous level of 8.8% in June 2017 and 9% in May, which is likely to come as welcome news to the UK's eating out operators, who have experienced high price inflation over the past 12 months.

However, some of the inflationary fall can be attributed to the higher monthly comparables of 2016, when the post-Brexit months saw prices rise rapidly as the value of the pound fell sharply against the Euro.

Sugar and cocoa prices have seen year-on-year deflation of 6.8%. Fruit inflation has also seen a decrease to just under 9% for July, down from 13.6% in June.

But oils and fats saw the highest price inflation for July, rising 12.4% year on year due to harvest issues for olive oils in the newer producing countries. Meat inflation saw double-digit rises in July as compared to the previous year, up to 11.4%.

The price of wholesale milk, cheese and eggs has also risen slightly this month, up to a year-on-year inflation figure of 10.6% for July.

Christopher Clare, head of consulting and insight at Prestige Purchasing, said: "While the CGA Prestige Foodservice Price Index shows that overall the price inflation figures appear to have calmed, this is somewhat due to the high comparables of last year. However, there are still a number of crucial supply issues that could force up prices further in many key categories."

"The weakened value of the pound is inevitably having a profound impact on wholesale prices in the UK and in some categories, such as vegetables, the threat of insufficient migrant labour is already threatening to constrain domestic supplies," added Graeme Loudon, commercial director at CGA.

The CGA Prestige Foodservice Price Index is jointly produced by Prestige Purchasing and CGA using data drawn from over 50% of the foodservice market and around 7.8m transactions per month.

Consumer spending on hotels, restaurants and bars rises despite falls overall >>

Foodservice inflation hits highest level for nine years >>

Restaurants set to face £20m inflationary increase on business rates >>

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.

close

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