Year-on-year foodservice price inflation fell to 4.6% in May 2024, the lowest figure recorded in 28 months.
The latest Foodservice Price Index from CGA and Prestige Purchasing reveals more positive trends for the hospitality sector, with month-on-month deflation of 0.4% in May – only the fourth such decrease in the last 32 months.
The figures indicate a sustained return towards pre-pandemic levels of inflation and more closely mirror trends seen for some time in the Consumer Prices Index (CPI).
The basket of prices fell month-on-month in six of the index’s 10 categories. The oils and fats category delivered six consecutive months of year-on-year deflation. After more than a year of double-digit inflation in most categories, this was reduced to just one in May, underscoring a significant shift towards price stability across the foodservice sector.
Shaun Allen, Prestige Purchasing CEO, said: “This fall of input-inflation is very welcome, as the full basket of CPI has also fallen sharply to 2% year-on-year, and diners will soon come to expect stable pricing again in our restaurants. Buyers should be particularly wary of proposed supplier increases in this period of sharply falling inflation.”
Reuben Pullan, senior insight consultant at CGA by NIQ, said: “After several years of relentlessly high inflation, these figures show some very welcome respite. While some rates remain higher than businesses would like, the general stability makes it much easier to plan for the future. In turn it should also reassure consumers, who have seen food and drink menu prices rise sharply but will hopefully become more confident with their spending as we move towards the second half of the year.”
