UK Foodservice Inflation Slows to 0.2% Amid Drought Concerns

Foodservice inflation has continued in July, but at a slower pace than last month. According to the latest Foodservice Price Index from NIQ and Prestige Purchasing, food and drink prices rose by just 0.2% in July, down from 1.8% in June.

The industry is closely monitoring supply conditions as drought concerns mount, particularly for key crops like vegetables. Broccoli, cauliflowers, potatoes, onions, carrots, and parsnips have all been impacted by hot and dry weather, creating uncertainty around future yields and availability.

However, there were some positive developments in the fruit category, with strong availability of British strawberries, raspberries, blackberries, blueberries, plums, and early-season apples driving down prices. International grain markets also strengthened during July, with wheat prices rising sharply amid concerns over disruption to Black Sea exports and weather-related challenges in major growing regions.

Meat markets internationally weakened for the first time this year, leading to softer poultry, pork, and beef prices that helped ease overall inflation in the meat category. But lamb prices reached record levels due to strong global demand and limited supplies.