Tue 21st May 2024 - Foodservice inflation returning to ‘more normal levels’ Foodservice inflation returning to ‘more normal levels’: Foodservice inflation is returning to “more normal levels”, according to the latest Foodservice Price Index report from Prestige Purchasing and CGA. The report shows April 2024 saw a significant year-on-year fall in inflation of 2.5%, continuing a steady trend towards stability in pricing. However, the data reveals a nuanced picture across different food categories. Only two categories recorded month-on-month deflation, while six others showed inflation rates of 1% or less. While there is a degree of price stability across most segments, some areas are subject to fluctuation, the report said. This has led to the first month-on-month inflation since January – a sign that although the foodservice sector is recovering well from recent global disruptions, some supply issues continue to impact pricing. Standout categories in the latest report include vegetables, which saw the highest month-on-month inflation of 1.4%. This increase follows extreme weather conditions in the UK and Europe, including one of the wettest winters on record. Conditions have hampered planting and impacted crop yields, leading to a scarcity of fresh produce and driving up prices for both consumers and businesses, the report said. Shaun Allen, chief executive of Prestige Purchasing, said: “The report paints a picture of cautious optimism for the industry. While some categories are still experiencing price fluctuations, the general trend towards lower inflation rates is a positive sign for the sector's recovery. However, it is important to remain vigilant about the potential impact of external factors, such as weather patterns and global events, which could continue to influence prices in the coming months.” James Ashurst, client director at CGA by NIQ, added: “This news should give business confidence a much-needed boost, and will hopefully also feed through to increased consumer spending in due course.”