Supply pressures push foodservice inflation up 1.8% in June

The index reached 153.1, reversing May's 0.1% decline.

Food and drink prices in the UK hospitality sector rose 1.8% month-on-month (MoM) in June, according to the latest Foodservice Price Index from NIQ and Prestige Purchasing.

The index reached 153.1 in June 2026, reversing the marginal 0.1% monthly decline recorded in May.

Annual inflation stood at 2.9%, suggesting year-on-year price growth has continued to ease, although short-term cost pressures strengthened during the month.

The report points to a widening gap between global commodity trends and domestic wholesale prices.

Whilst Brent crude oil prices fell to £64 a barrel in June from £84.95 in May and the UN Food and Agriculture Organisation's Food Price Index slipped 0.3% MoM, UK hospitality food and drink costs increased across most categories.

The report says this may reflect the impact of existing supply contracts as well as domestic supply constraints and weather-related disruption.

Fish recorded the largest monthly increase, rising 2.7%, with annual inflation reaching 6.4%.

The report attributes this to reduced cod and haddock supplies linked to North Atlantic fishing quotas, alongside production constraints affecting farmed salmon and shrimp.

Meat and poultry prices increased 2% over the month and were 4.1% higher than a year earlier, reflecting limited global cattle supplies.

Coffee, tea and cocoa prices rose 1.8% in June and were 6.2% higher year-on-year (YoY), with weather conditions in Brazil and Vietnam and ongoing cocoa supply shortages in West Africa cited as contributing factors.

Some categories also rose despite lower global commodity prices.

Although the FAO sugar price index fell 5.7% in June, mineral water, soft drinks and juices increased 1.2%, whilst sugar, jam, syrups, and chocolate rose 0.6%.

Fresh produce also showed signs of higher monthly costs. Vegetable prices rose 1% during June despite remaining 1.6% below year-earlier levels.

Milk, cheese, and eggs increased 0.9% MoM but were still 0.7% lower than a year ago.

The report links these increases to heatwaves across Europe affecting crop yields and milk production.

“Operators must look beyond headline energy prices and focus their procurement strategies on mitigating climate and structural risks, which will undoubtedly dictate market pricing as we move through the second half of the year,” said Shaun Allen, CEO of Prestige Purchasing.