The hospitality industry is coming under further pressure as inflation in food and drink prices hits an all-time high, recent research suggests.
Inflation in food and drink prices reached 18.8 percent in September, with experts suggesting that Putin’s invasion and uncertainty in the Black Sea trade routes contributed to the rising tariffs.
After hitting 15% for the first time in August, the CGA Prestige Foodservice price index rose again in September.
This means that inflation has been in double digits in every month of 2022 since January.
Year-on-year price increases were 10 percent in each food category of the September index, with dairy and oils and fats being the most inflationary segments.
While food commodities markets have shown some signs of easing in recent weeks, OPEC’s cut in oil production and the continued vulnerability of the Black Sea grain corridor agreement with Russia are factors that are putting upward pressure on prices.
Other core hospitality products, including meat, fruit and vegetables, were all above 17 percent, with total food prices rising 2.9 percent since August alone.
Food inflation is also rising rapidly in the retail sector, with the food category of the Consumer Price Index passing 10 percent for the first time in September, while fresh food rose 13.3 percent.
James Ashurst, client director at CGA by NielsenIQ, said: “Hospitality is beset by the biggest challenges many in the industry can remember. The news of inflation approaching 20 percent will deal another blow to the confidence of both businesses as well as consumers, and there is no delay in sight.
“Britain’s best restaurants, pubs and bars still have a bright future, but thousands of businesses weakened by two years of COVID-19 are now extremely vulnerable. Government support is desperately needed to help them through this storm.”