Wed 6th Nov 2024 - Foodservice inflation eases for the 15th month but underlying pressures remain Foodservice inflation eases for the 15th month but underlying pressures remain: Year-on-year inflation in the hospitality sector continued its downward trend in September, falling to 2.4%, according to the latest Foodservice Price Index report from Prestige Purchasing and CGA by NIQ. But while this marks the 15th consecutive month of decline, the report also highlights persistent inflationary pressures, with nine out of ten categories showing month-on-month price increases. This marks the fourth consecutive month of overall month-on-month inflation according to the index. The vegetables category continues to report high inflation, driven in part by ongoing elevated potato prices, while the oils and fats category saw the largest month-on-month increase, primarily due to a surge in butter prices. While non-alcoholic beverages continue to be a significant driver of inflation, the sugar, jam, syrups and chocolate category, along with vegetables, now show the highest year-on-year increases. Prestige Purchasing chief executive Shaun Allen said: “The continued easing of year-on-year inflation is welcome news, but the sustained month-on-month increases across almost all categories highlight the volatility that still exists in the market. Operators need to be proactive and adaptable in their procurement strategies, paying close attention to emerging trends and potential disruptions to ensure they remain competitive.” Reuben Pullan, senior insight consultant at CGA by NIQ, added: “After an ongoing stretch of price rises across the hospitality sector, this continued drop in inflation should bring some relief to hospitality venues and consumers alike. Although some costs are easing, month-on-month fluctuations indicate that both revenue and margins are likely to remain under pressure through the rest of 2024 and into next year.”