Wed 26th Jun 2024 - Many prices falling as foodservice inflation hits a 28-month low Many prices falling as foodservice inflation hits a 28-month low: Year-on-year foodservice inflation fell to 4.6% – the lowest figure recorded in 28 months, according to the latest Foodservice Price Index (FPI) report from Prestige Purchasing and CGA. May also saw month-on-month deflation of 0.4%, only the fourth such decrease in the last 32 months. The figures indicate a sustained return towards pre-pandemic levels of inflation and mirror trends seen for some time in the Consumer Prices Index (CPI). The basket of prices fell month-on-month in six of the FPI’s ten categories. The oils and fats category is of particular note, having delivered six consecutive months of year-on-year deflation. After more than a year of double-digit year-on-year inflation in most categories, this was reduced to just one in May. This underscores a significant shift towards price stability across the foodservice sector, those behind the index said. Shaun Allen, Prestige Purchasing chief executive, 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, added: “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.”