Food prices rise by a fifth in 12 months

As in previous months, oils and fats led the way, rising almost 50% year-on-year. Prices in the milk, cheese and eggs category fell slightly in the month but still increased by more than 30% compared to October 2021.

Only one sector within the index is not in double digit-inflation, with the category of sugar, jams and syrups at 9.6%.

Oil and money stabilising

Core products for hospitality such as meat, fish, vegetables and fruit are now all in the 16% to 19% inflation range, year-on-year. Food in total climbed a further 1.3% month-on-month during October and is now running at 21% inflation year-on-year.

There were some signs during October that price-influencing factors before delivery are beginning to normalise, with oil prices, exchange rates and commodity markets all showing increasing stability.

Prestige Purchasing chief executive Shaun Allen said: “The coming months will be extremely tough for hospitality operators. They will be caught in the squeeze between rapidly rising costs of operation and diners seeking even more value as a result of the cost-of-living crisis.”

Margins will be hit at Xmas

He continued: “Riding out this storm requires investment in supply chain management because, in the hands of skilled professionals, price increases can and should be avoided and mitigated.”

James Ashurst, client director at CGA by NielsenIQ, added: “Soaring costs are making trading exceptionally challenging across the supply chain and eye-watering inflation in several key categories will hit sales and margins again over the crucial Christmas season.

“While it’s encouraging to see some signs of inflationary respite as we move into 2023, it is clear our sector needs targeted Government support to get through these unprecedented challenges.”