Inflation measured by the CGA Prestige Foodservice Price Index dropped below 10% in March, marking the first instance in two years, with a notable 1.4% decline. This contrasts with the Consumer Price Index's marginal 0.1% increase, showing the Foodservice Price Index remains high at double the retail level.
While only one FPI category decreased year-on-year, indicating market shifts, all categories saw price reductions month-on-month. Lower UK wage growth, despite an upcoming National Living Wage increase, is expected to help ease inflation towards the 2% target by late 2024, as per OBR.
"While the continued decline in inflation rates is undoubtedly positive news, it is crucial for hospitality businesses to exercise acute attention to their purchasing strategies during this period." - Shaun Allen, Prestige Purchasing CEO
"After two years of relentlessly high inflation, a fall in the Foodservice Price Index demonstrates a step in the right direction for the sector, but challenges like border checks in the UK may impact supply costs." - James Ashurst, client director at CGA by NIQ
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