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Fri 5th Dec 2025 - Foodservice price inflation eases for first time in six months as seasonal supply improves |
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Foodservice price inflation eases for first time in six months as seasonal supply improves: Food and drink prices in hospitality fell 0.3% in October 2025, the latest Foodservice Price Index from CGA by NIQ and Prestige Purchasing reveals. The downward movement marks an important break in the year’s trends after six consecutive months of rising costs, bringing respite to the UK’s hospitality and foodservice sectors ahead of the festive trading period. However, despite the dip, there remains significant volatility across several key food and drink categories. October’s most significant downward movement was recorded in the vegetables category, where prices fell by 1.7% year on year. This decline reflects improved seasonal supply compared with 2024, supported by better crop emergence and completed plantings across the UK. However, the outlook remains mixed, with potato yields varying significantly between Scotland and England due to prolonged heat, and brassica sizes remaining small and making winter availability dependent on improved rainfall. There was also an easing of inflation in October in the milk, cheese and eggs category, where prices fell 1.5% month on month. This reflects a softening in global dairy markets, with declines in whole milk powder and cheese quotations. Conversely, the meat and poultry category moved in the opposite direction, with prices rising 0.7%. While global meat indices have shown some easing, UK poultry markets face severe volatility due to renewed Avian Flu outbreaks. Unprecedented 30-day export bans on major turkey suppliers are creating acute shortages and record-high spot prices just as festive demand accelerates. Shaun Allen, chief executive of Prestige Purchasing, said: “The slight decline in the Foodservice Price Index to 150.6 offers a welcome, albeit temporary, respite for operators after six months of consistent month-on-month inflation. However, the market remains incredibly fragile, and this month’s easing should be viewed with caution.”
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