2024 Hospitality Inflation: A Fresh Deep Breath
Back in October, the Foodservice Price Index nudged gentle downward, dropping to 2.2 % year‑on‑year. That’s the sixteenth straight month of decline, and it’s a big sigh of relief for chefs, baristas, and diners alike.
Key Highlights
- Year‑on‑year inflation slid to 2.2 %.
- Monthly drop of –0.4 % → prices fell in 6 of 10 categories.
- Fish is the lone category with true deflation.
- Vegetables and sugar, jam, syrups, & chocolate remain the inflation hot spots.
What the Numbers Really Mean for Us
Imagine the cost of a latte, a kebab, or a supermarket loaf slipping a bit cheaper each month. Businesses are getting a breather, but the next year could turn this tranquility into a roller coaster.
Budget Blues & 2025 Outlook
Government’s Autumn Budget is waving a new flag: add another 2.3 % to the inflation forecast. If wages & National Insurance get passed up the supply chain, the next year might feel like a hot plate again.
- Potential shock: Food & drink prices could jump sharply.
- Impact: Amplify the ongoing cost‑of‑living squeeze.
Hear From the Front Lines
Shaun Allen, CEO of Prestige Purchasing:
“We’re glad to see inflation easing, but the Autumn Budget throws a serious curveball. The sector is already juggling volatility. Keep a keen eye on the market if you want to stay ahead.”
Reuben Pullan, Senior Insight Consultant at CGA by NIQ:
“Sixteen months of decline has lightened the load before the holiday rush. Yet, the Budget’s added burden on employers could push the fragile recovery hard. The industry is resilient, but expect harder trading for a while longer.”
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