Fri 30th Jan 2026 - Foodservice price inflation accelerates in December as festive demand peaks Foodservice price inflation accelerates in December as festive demand peaks: Food and drink prices in the hospitality sector rose by 1.1% in December, according to the latest edition of the Foodservice Price Index from Prestige Purchasing and NIQ, powered by CGA intelligence. This upward month-on-month movement marks a significant acceleration in inflation to close the year. It was driven by high demand for many items in the run-up to Christmas, as well as persistent supply-side constraints. The index recorded steep increases in prices in several high-volume categories. They included milk, cheese and eggs, which recorded the highest rise at 1.9%, as domestic price pressures intensified despite continued softening in global dairy commodity markets. Disruptions related to avian flu reinforced volatility in egg supply chains, compounding costs during a peak usage period. Fruit prices rose nearly as fast at 1.8% in December, as markets shifted to higher-cost glasshouse production for soft fruits and yields of Spanish citrus were significantly reduced. Inflationary momentum also remained critically high in coffee, tea and cocoa. Coffee markets continued to trade near multi-year peaks due to adverse weather in Brazil and Vietnam, while cocoa prices were close to record levels, driven by weak west African harvests and tight inventories. In meat and poultry, the centrepiece category of the festive period, inflation accelerated to 1.5%, as strong seasonal demand collided with structural challenges. Beef traded at historically strong levels due to tight domestic availability, while poultry markets were volatile due to disruptions to supply from avian flu. Prices also rose in categories including oils and fats and sugar, jam, syrup and chocolate, highlighting a broad-based inflationary environment where domestic energy, labour and logistics costs are limiting the pass-through of any softening in global commodities. Shaun Allen, chief executive of Prestige Purchasing, said: “The surge in December was a stark reminder of the volatility that continues to plague the supply chain. While global indices for sugar and vegetable oils showed signs of easing in 2025, the reality for UK operators was very different.”