Hospitality inflation continues to drop
CGA says year-on-year inflation in the hospitality sector has continued its downward trend.
Year-on-year inflation in the hospitality sector continued its downward trend in September 2024, falling to 2.4%.
The latest Foodservice Price Index report from Prestige Purchasing and CGA by NIQ reveals that this is the 15th consecutive month of decline, offering some respite for pub and bar businesses and consumers alike.
However, the report also highlights persistent inflationary pressures, with nine out of 10 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. Meanwhile, 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.
"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," says Reuben Pullan, senior insight consultant at CGA by NIQ. "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."
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