FDBusiness.com

UK Food Service Price Inflation Falls to 7% But Prices Still Rising in Key Categories

 Breaking News
  • Ready Meals – Not Ready For the Future New research (1) published by Eating Better, a powerful alliance of more than 50 organisations, shows that supermarkets need to shake up their ready meal ranges. They are not catering for the growing number of flexitarian customers who are cutting back on their meat eating for their health and the health of the planet (2). [...]...
  • Top 100 Largest Spirits Brands Revealed The world’s most popular alcoholic drink in 2017 was the South Korean soju brand Jinro, owned by Hite-Jinro, according to the IWSR Real 100, the definitive ranking of the world’s largest spirits brands by volume. Selling almost 76m nine-litre cases, Jinro retains its number one position from last year, and once again by a staggering [...]...
  • Ireland’s Most Sustainable Paper-free Cup Launched Ireland’s only completely paper-free compostable cup has been launched by Zeus, the Irish global packaging solutions company. Unlike other compostable cups, the Treefree Cup contains absolutely no paper product, making it the most sustainable single-use cup available in the Irish market. Additionally, to tackle the composting waste problem in Ireland, the cups and lids will be [...]...
  • GEA Supplies Largest Buttermaking Machine in India GEA recently sold its first buttermaking machine type BUE to an Indian dairy producer. Creamy Foods Limited, located in the state Uttar-Pradesh, placed an order for a GEA BUE 6000, which has a capacity of up to 6000kg/h butter, making it the largest buttermaking machine in India. The new machine will be brought into operation in [...]...
  • Clearance For Arla Foods UK and Yeo Valley Deal The British Competition and Markets Authority (CMA) has cleared Arla Foods UK’s proposed acquisition of Yeo Valley Dairies, a subsidiary of the Yeo Valley Group. The transaction will give the farmer-owned dairy co-operative the rights to use the Yeo Valley brand in milk, butter, spreads and cheese under an intellectual property licence with Yeo Valley. The [...]...

UK Food Service Price Inflation Falls to 7% But Prices Still Rising in Key Categories

UK Food Service Price Inflation Falls to 7% But Prices Still Rising in Key Categories
August 31
09:23 2017

The latest edition of the CGA Prestige Foodservice Price Index reveals that in some categories actual prices are starting to come down slightly compared with previous months, although in other key sectors the trend is still up. Inflation in wholesale food service prices fell in July 2017, welcome news to the UK’s eating out operators who have experienced unprecedented food price inflation over the past 12 months.

This month’s Foodservice Price Index, produced by CGA and Prestige Foodservice, reveals that food inflation hit 7% in the 12 months to July 2017, down from its previous level of 8.8% in June 2017 and 9% in May.

But while some food prices are coming down, this inflationary fall can also be attributed to the higher monthly comparables of 2016, when the post-Brexit months saw prices rise rapidly as the value of the pound fell sharply against the Euro.

One bright spot seen in this month’s FPI is in the price of sugar and cocoa, which has seen year-on-year deflation of 6.8% as prices for key ingredients in this category have fallen. Fruit inflation has also seen a healthy decrease to 8.95% for July, down from 13.6% in June due to a brief dip in prices.

Other key food categories such as fish, meats, and oils and fats are still seeing price rises year on year due to supply and labour issues in producing countries.

Oils and fats saw the highest price inflation for July, at 12.4%, due to harvest issues for olive oil in the newer producing countries, while meat price inflation saw double digit rises in July as compared to the previous year, up to 11.4%.

The price of wholesale milk, cheese and eggs has also risen slightly this month, up to a year-on-year inflation figure of 10.6% for July.

Christopher Clare, Head of Consulting & Insight at Prestige Purchasing, comments: “While the CGA Prestige Foodservice Price Index shows that overall the price inflation figures appear to have calmed, this is somewhat due to the high comparables of last year. However, there are still a number of crucial supply issues that could force up prices further in many key categories.”

“The weakened value of the pound is inevitably having a profound impact on wholesale prices in the UK and in some categories, such as vegetables, the threat of insufficient migrant labour is already threatening to constrain domestic supplies,” says Graeme Loudon, commercial director at CGA.

The CGA Prestige Foodservice Price Index is jointly produced by Prestige Purchasing and CGA using data drawn from over 50% of the food service market and around 7.8 million transactions per month. This is the final month that the full report will be available as a free publication. Contact Michael.Luke@Prestige-Purchasing.com for further information.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements