Hospitality food and drinks prices hit new highs in December 2025

This is due to strong seasonal demand and ongoing supply issues during the festive period.

Food and drink prices in the hospitality sector rose 1.1% in December, with the Foodservice Price Index (FPI) reaching 152.8, according to NIQ and Prestige Purchasing’s report.

The increase was driven by strong seasonal demand and ongoing supply issues during the festive period.

Several high-volume categories saw notable price rises. Milk, cheese, and eggs led the increases at 1.9%, as domestic price pressures intensified despite easing global dairy prices.

Egg supply chains were further disrupted by avian flu at a time of peak demand.

Fruit prices rose 1.8%, reflecting higher-cost glasshouse production for soft fruits and reduced Spanish citrus yields.

Coffee, tea, and cocoa also saw sustained inflation. Coffee remained near multi-year highs due to adverse weather in Brazil and Vietnam, whilst cocoa stayed close to record levels amidst weak West African harvests and tight inventories.

Meat and poultry, key categories for the festive season, rose 1.5% as strong demand met structural supply challenges.

Beef prices were historically high due to limited domestic availability, and poultry markets were disrupted by avian flu.

Other categories, including oils and fats as well as sugar, jam, syrups, and chocolate, also saw price increases, reflecting broad inflationary pressures where domestic energy, labour, and logistics costs limited the impact of falling global commodity prices.