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Foodservice price inflation dropped to 18.9% in March 2023, according to the CGA Prestige Foodservice Price Index. The drop is the first time in five months that the rate has fallen below 20%.
UKHospitality Chief Executive Kate Nicholls said: “We are beginning to see a positive direction of travel with consistently declining food service price inflation, but the decreases we’re seeing are not significant enough to be felt by businesses yet.
“While five months of decline is positive, the fact of the matter is that almost 19% price inflation for food and drink is enough to ruin businesses, especially alongside energy costs and workforce challenges.
18.9%Foodservice price inflation in March
FiveConsecutive months of small decreases in the rate of inflation
“Much more needs to be done to tackle the cost increases businesses are experiencing in a meaningful way and that starts with energy, with Government forcing suppliers to renegotiate contracts with businesses that fixed during the height of the crisis.
“Only by tackling the root causes of inflation can hospitality businesses return to its position of driving economic growth.”