Inflation drops slightly to 10.1% – our response
April 19, 2023
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New data from the Office for National Statistics (ONS) shows that inflation fell to 10.1% in the year to March this year, down slightly from 10.4% in February. Food prices continue to be a key driver, rising at their fastest rate in 45 years. The ONS figures measures inflation for consumers, not businesses.
For hospitality businesses, food service price inflation sits at 20.6%. The figures, from the CGA Prestige Foodservice Price Index, have remained above 20% for a number of months.
New research from pricing consultancy Pearson Ham shows that the price pubs were paying for food rose three times as fast as the prices on their menus.
UKHospitality Chief Executive Kate Nicholls
UKHospitality Chief Executive Kate Nicholls said: “It’s becoming increasingly concerning that we’re not seeing inflation decrease as quickly as many hoped, particularly when business costs are experiencing inflation far higher than the 10.1% released by the Office for National Statistics today.
“We saw just last week that food service price inflation remains over 20% and new research shows that the price pubs paid for food rose three times quicker than their menu prices.
“Hospitality businesses are doing all they can to shield consumers from price rises, which means they’ve absorbed as much cost as they can, but that is becoming unsustainable for many.
“Our sector can help the Government achieve its aims of halving inflation, if it is given a helping hand by the Government to ease recruitment challenges and energy suppliers are reigned in so energy costs are able to fall. I would strongly urge it to do so and harness the power of hospitality to create employment and economic growth, and reduce inflation.”
