UK Hospitality Inflation Slows as Heatwave Threatens Fresh Food Supplies
Hospitality inflation cooled in July as food and drink prices across Britain's hospitality sector rose by just 0.2 per cent month on month, a sharp slowdown from the 1.8 per cent increase recorded in June.
Despite the moderation, restaurants, pubs, and other hospitality businesses are facing persistent volatility across their supply chains due to prolonged heatwaves and renewed pressure in global commodity markets.
The latest Foodservice Price Index from NIQ and Prestige Purchasing showed that vegetable markets are emerging as a particular concern, with extended hot and dry conditions creating moisture stress across UK crops affecting broccoli, cauliflower, potatoes, onions, carrots, and parsnips.
Favourable growing conditions supported strong domestic supplies of strawberries, raspberries, blackberries, blueberries, plums, and early-season apples, helping prices fall during July. However, international wheat prices rose sharply during the month as traders assessed the risks of disruption to Black Sea exports alongside weather problems in several major producing regions.
Lamb prices reached record levels due to strong international demand and constrained supply, while meat prices offered some relief with poultry, pork, and beef prices weakening for the first time this year. The figures underline the increasingly fragmented nature of food inflation, with individual commodities remaining exposed to extreme weather, geopolitical disruption, and changing global demand.