The report, produced by Prestige Purchasing and CGA by NIQ, shows that year-on-year inflation dropped to 1.9% in the final month of 2024, but prices rose by 1.0% from November — the highest monthly jump since June 2024.
In a marked shift from the previous two months, all 10 categories of the Index recorded month-on-month inflation.
According to the Index, the breadth of increases suggests that ‘inflationary pressures are becoming more widespread across the foodservice sector’.
“This month’s figures are a reminder that the battle against inflation is far from over,” says Shaun Allen, Prestige Purchasing CEO.
“While we’ve seen encouraging progress in the year-on-year trend, the month-on-month increase is a reminder we must stay vigilant.”
Some categories showed continued easing in their year-on-year inflation rates. and
Vegetables (+3%), and sugar, jam, syrups and chocolate (+3.5%) saw significant declines — but oils and fats (+5.7%) emerged as a category of concern.
Fish (-1.2%) remained the only category with year-on-year deflation.
“After a solid end to 2024 for hospitality sales, news of renewed foodservice inflation is a concerning start to this year,” says Reuben Pullan, senior insight consultant at CGA by NIQ.
“On top of other pressures including increased international economic uncertainty, National Insurance rises, and hesitant consumer confidence, an upswing in prices will squeeze operators’ margins even tighter.
“The inflationary threat is another reason why hospitality needs more support from government so businesses can invest, create jobs and drive growth.”
