December Foodservice Price Index Surges: What It Means for the UK Hospitality Scene
Prestige Purchasing and CGA by NIQ just dropped the latest Foodservice Price Index (FPI) report, and the numbers are telling a familiar story: inflation is picking up again, and it’s looking pretty broad-ranging.
Key Take‑aways
- Year‑on‑year inflation fell to 1.9% – a nice drop, but still above the 1.5% mark we’d hoped to see.
- Month‑on‑month spike: +1.0% – the biggest bump since June 2024.
- All 10 categories have seen a month‑on‑month rise. The wildfire of price pressure is spreading across the board.
- Only fish saw a year‑on‑year drop (-1.2%).
Hot Topics by Category
- Vegetables – +3.0% (a dip from earlier months)
- Sugar, jam, syrups & chocolate – +3.5% (down from a peak)
- Oils & fats – +5.7% – the standout alarm flag.
What’s Brewing Under the Surface
While the numbers ring some good bells (a softening of overarching inflation), the echo of a potential wage hike from the Autumn Budget and looming global trade friction adds a few extra layers of worry.
Industry Voices
- Shaun Allen, Prestige CEO said, “The battle against inflation is far from over. These month‑on‑month gains remind us to stay on our toes. 2025 could bring another round of price pressure.”
- Reuben Pullan, CGA Insight Lead added, “After a solid close to 2024, this uptick feels like an extra blow. With rising national insurance and a shaky consumer confidence, restaurants will find their margins squeezed tighter. The sector calls for more government backing to keep the cycle of hiring and growth moving.”
Pitch‑forks to the Rescue? Flexibility, Not On‑the‑Spot Magic
From global supply chain hiccups to bizarre commodity swings, the foodservice market smells of uncertainty. Operators who stay nimble with procurement and keep a close eye on all categories might weather the storm. The objective? To keep the menu delicious and the bottom line intact.
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