Thu 6th Nov 2025 - Foodservice Price Index reaches new high as costs rise for sixth consecutive month Foodservice Price Index reaches new high as costs rise for sixth consecutive month: Food and drink prices in the hospitality sector rose 0.7% in September, taking the Foodservice Price Index from CGA by NIQ and Prestige Purchasing to a record high of 151.1. This latest movement marks the sixth consecutive month of rising wholesale prices for the UK hospitality and foodservice sector, underscoring persistent inflationary pressure across multiple categories. While the Iindex recorded a smaller month-on-month increase of 0.7% from August, upward pricing momentum continues despite mixed global commodity signals. Inflation was most acute in the oils and fats category, where prices surged 2.9% month-on-month. This escalation was primarily fuelled by tightness in the global supply of high-demand items like sunflower and rapeseed oil, which more than compensated for minor dips in palm and soybean prices. Pressure on inputs extended to the bread and cereal category, which recorded a significant increase of 1.6%. Here, any benefit from softer global grain prices was largely negated for UK operators by high domestic operational costs including energy, packaging and labour, resulting in firm pricing for finished bakery products. Further inflationary challenges came from physical supply constraints, notably in the fish category, where prices rose 1.4% due to limited whitefish quotas. The UK’s challenging summer weather meanwhile contributed to a 0.5% increase in the vegetables category, as heat stress and water scarcity affected crop yields. There was some relief in the mineral water, soft drinks and juice category, where prices contracted 0.4%. However, coffee, tea and cocoa prices rose 1.4%, driven by tightening coffee and tea supplies despite a plunge in global cocoa futures. Prestige Purchasing chief executive Shaun Allen said: “While we see some commodity markets, like cocoa, offering relief, this is immediately offset by high domestic operational costs in areas like energy and labour, which are driving up prices in critical categories like oils and fats and bread and cereal.” Reuben Pullan, senior insight consultant at CGA by NIQ, said: “Hospitality must now hope for a burst of spending over the festive season, followed by respite on the multitude of macro and micro inflationary challenges in 2026.”