Hospitality Sector Sees 0.4% Price Increase Amid Global Commodity Market Volatility

The hospitality sector saw a 0.4% increase in food and drink prices in August, driven by rising global commodity markets and weather concerns.

The Foodservice Price Index by Prestige Purchasing and NIQ revealed that inflationary pressures remain strong across the supply chain, with price increases particularly pronounced in categories tied to international market supply.

Sugar, jam, syrups, and chocolate prices surged due to adverse weather in Europe and Asia, as well as reduced production in Brazil. Meat and poultry also returned to inflation, driven by strong global demand and constrained supplies of pork and lamb.

Milk, cheese, and eggs saw their highest monthly increase in several months, following hot and dry weather in Europe that tightened raw milk supplies. Global vegetable oil prices reached their highest level since 2022, pushing up the oils and fats category.

However, price drops in fresh produce partially offset these increases, as favorable domestic supply conditions lowered vegetable costs, and seasonal availability of UK-grown soft fruit, stone fruit, and early apples eased fruit inflation.