Hospitality food and drink prices climbs 0.4% in August

This marks the fifth consecutive month of price increases

Food and drink prices in the hospitality sector have risen by 0.4% in August, the fifth consecutive increase in a row, according to the latest Foodservice Price Index from CGA by NIQ and Prestige Purchasing.

The report said this highlights that hospitality businesses continue to navigate widespread inflationary pressures. Persistent inflation is being driven by a complex mix of global factors, including geopolitical volatility, adverse weather conditions and sustained high input costs. It comes at a crucial time for the hospitality sector, as it prepares for the end-of-year trading period.

Pressures have been particularly acute in key categorie,s including oils & fats, where a significant uptick was driven by higher international prices for palm, sunflower and rapeseed oils amid robust global import demand and tightening supplies.

The coffee, tea & cocoa category saw the most substantial year-on-year increase, with prices surging as a result of global supply constraints and weather concerns in major producing regions.

The meat & poultry category recorded a further price rise, with high inflation in beef and lamb lifting the Food and Agriculture Organisation’s Meat Price Index to an all-time high. This was in contrast to poultry prices, which declined slightly due to ample supplies from abroad. Costs also rose in the milk, cheese & eggs category, and increased production and labour costs may sustain upward price trends here.

“The August report reflects a difficult and ongoing reality for the hospitality sector. While some prices have stabilised or even slightly reduced, the overall trend is one of persistent increases driven by a mix of climate variability, geopolitical issues and enduring pressures on energy and logistics,” Shaun Allen, CEO of Prestige Purchasing, said.