December inflation raises fears of higher prices in UK's hospitality sector: report
December also saw the highest monthly jump since June 2024.
The faster month-on-month inflation in December is raising concerns over renewed price pressures for the UK's hospitality sector, the latest Foodservice Price Index (FPI) reported.
The inflation rate in December slowed year-on-year to 1.9% but accelerated by 1% from November. This is also the highest monthly jump since June 2024.
The FPI report, from Prestige Purchasing and CGA by NIQ, also noted that all 10 categories of the index recorded month-on-month inflation.
More positively, some categories showed continued easing in their YoY inflation rates: Vegetables (+3%) and sugar, jam, syrups, and chocolate (+3.5%) saw significant declines, but oils & fats (+5.7%) emerged as a category of concern. Fish (-1.2%) remained the only category with YoY deflation.
“The potential impact of the Autumn Budget, combined with these latest figures, suggests that we could be facing a renewed inflationary challenge in 2025,” said Shaun Allen, CEO of Prestige Purchasing.
Moreover, the report also highlighted the ongoing volatility and uncertainty in the food-service market and the need for operators to remain vigilant and closely monitor price trends across all categories.
“On top of other pressures, including increased international economic uncertainty, National Insurance rises, and hesitant consumer confidence, an upswing in prices will squeeze operators’ margins even tighter,” said Reuben Pullan, senior insight consultant at CGA by NIQ.
