Propel Morning Briefing Mast HeadAccess Banner  
Propel Morning Briefing Mast Head Paul's Twitter Link Paul's Twitter Link

BrewDog Banner
Morning Briefing for pub, restaurant and food wervice operators

Thu 7th Sep 2023 - Food inflation in hospitality slows slightly as retail prices begin to fall
Food inflation in hospitality slows slightly as retail prices begin to fall: Inflation as measured by the CGA Prestige Foodservice Price Index fell marginally to 21.7% year-on-year in July. Despite the slight fall of 0.9 percentage points, inflation remains only just below the Index’s previous peak of 22.9% in December 2022. The latest Index also reports a month-on-month increase of 0.7% in contrast to supermarkets, where prices fell by 0.4% between June and July. It also reveals some signs that some foodservice prices are starting to ease. The fish category recorded a 0.8% fall, its first month-on-month drop since July 2022. Dairy prices remained stable, and the month-on-month increase in the vegetables category slowed by half, from 3.2% in June to 1.6% in July. While the cost of global food commodities increased by 1.3% in July, the UN FAO Commodity Index remains 11.8% below its value in the corresponding month in 2022. Brent crude oil prices and major currency rates remained stable throughout July. However, inflation is falling more slowly in the category of food products, where processed items dominate and manufacturers remain exposed to high inflationary inputs including energy and labour. Many of these products are also imported and have accrued additional costs from post-Brexit trading arrangements. Shaun Allen, chief executive of Prestige Purchasing, said: “Food and drink supply into hospitality has been slower to react to falling input costs than the retail sector. We are confident that over the remainder of the year inflation will begin to ease at our kitchen doors, but both buyers and suppliers will need to play their part in curbing the continually rising costs that threaten the existence of so many of our sector’s brilliant operators.” James Ashurst, client director at CGA by NIQ, added: “Businesses will be relieved to see a slight easing of inflation in July, and there are some welcome early signs of relief in key spending areas for both operators and consumers. However, with inflation still topping 20%, trading conditions remain extremely challenging.”

Return to Archive Click Here to Return to the Archive Listing
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
Monster Energy Banner
Casual Dining Banner
Pago Banners
Peppadew Banner
Commercial Kitchen Banner
Brixton Brewery Banner
Inch's Cider Banner
Santa Maria Banner
HDI Banner
Strongbow Banner
Propel Banner
Cynergy Bank Banner
John Gaunt Banner
Zonal Banner
HGEM Banner
Access Banner
Purple Story Banner
Propel Banner
Christie & Co Banner
CACI Banner
Sector Banner
Airship – Toggle Banner
COREcruitment Banner
Wireless Social Banner
Payments Managed Banner
Hospitality Rising Banner
Greene King Banner