FPI hits ninth consecutive month of double digit inflation
The oils & fats category led the way, rising almost 50% year-on-year. Prices in the milk, cheese & eggs category fell slightly in October but still increased by more than 30% compared to October 2021. Only one category within the Index is not in double digit-inflation, with sugar, jams and syrups the outlier at 9.6%.
James Ashurst, client director at CGA by NielsenIQ, said: “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 that our sector needs targeted Government support to get through these unprecedented challenges.”
Core products for hospitality such as meat, fish, vegetables and fruit are now all in the 16%-to-19% 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.
Shaun Allen, chief executive of Prestige Purchasing, added: “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. Riding out this storm requires investment in supply chain management, as in the hands of skilled professionals price increases can and should be avoided and mitigated.”
A snapshot of the FPI report can be downloaded here.