Food price inflation nearing 20 per cent amid storm of cost pressures

Food price inflation nearing 20 per cent amid storm of cost pressures

T

he hospitality business is being put under additional pressure with inflation in food and drink costs reaching record high, newest research suggests.

Inflation in food and drink costs hit 18.8 per cent in September with experts suggesting Putin’s invasion and uncertainty within the Black Sea buying and selling routes contributed to hovering charges.

After reaching 15 per cent for the primary time ever in August, the CGA (*20*) Foodservice Price Index surged again throughout September.

This means inflation has been in double digits in each month of 2022 since January.

Year-on-year price rises topped 10 per cent in each food category of the September index, with dairy and oils and fat essentially the most inflationary segments.

While food commodity markets have proven some indicators of easing in latest weeks, OPEC’s discount of oil manufacturing and the continued vulnerability of the Black Sea grain hall take care of Russia are among the many components putting upwards pressure on pricing.

Other core merchandise for hospitality together with meat, greens and fruit have been all above 17 per cent, with whole food costs climbing 2.9 per cent since August alone.

Food inflation can also be rising quick within the retail sector, and the food category of the Consumer Price Index passed 10 per cent for the primary time in September, with recent food climbing 13.3 per cent.

James Ashurst, shopper director at CGA by NielsenIQ, said: “Hospitality is besieged by the biggest challenges that many in the sector can remember. News that inflation is closing in on 20 per cent will deal another heavy blow to the confidence of businesses and consumers alike, and there is no respite in sight.

“Britain’s best restaurants, pubs and bars still have a bright future, but thousands of businesses weakened by two years of COVID-19 are now extremely fragile. Government support is desperately needed to sustain them through this storm.”

Source:standard.co.uk

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