Foodservice Prices Quietly Chill: A Monthly & Year‑on‑Year‑Cool‑Drop
Prestige Purchasing and CGA’s newest Foodservice Price Index (FPI) is giving the hospitality industry a breath of relief. In May 2024, inflation is slipping again—this time to a 4.6% year‑on‑year figure, the lowest in a full 28 months.
May’s Miracle Numbers
- Month‑on‑Month deflation: –0.4% (fourth time in the last 32 months)
- Inflation creeping back toward pre‑pandemic levels, echoing the Consumer Prices Index (CPI) trend.
Which Foods Loved the Cooler?
Six out of ten FPI categories dropped in May:
- Oils & Fats – the star of the show, boasting six straight months of lower year‑on‑year inflation. After a year of double‑digit inflation, this month saw just one jump.
- Other sap‑like categories (e.g., meats, produce, bakery) also dipped.
Why It Matters
“When input‑inflation falls, diners—just like we—start to feel a lift in their wallet’s peace of mind,” said Shaun Allen, CEO of Prestige Purchasing. “We’re finally seeing the whole CPI basket shrink to 2% YoY, so expect the rest of the menu to stay steady.”
Closing the gap, Reuben Pullan, senior insight consultant at CGA by NIQ added:
“These numbers promise a break after multiple years of relentless inflation. While a few rates still feel high, the overall stability lets us plan ahead, and it’s a boost for customers who’ve been watching menu prices climb through the roof. By the second half of the year, we hope confidence will return.”
Takeaway for Food‑service Whizzes
- Keep an eye on suppliers—there may still be sharp price boosts lurking.
- Use this easing of inflation as a chance to lock in future plans.
- Customers should feel a little less stressed about their bills.
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