With staple products such as meat, potatoes and dairy already recording price increases ‘significantly’ ahead of the headline rate of inflation, operators face the dilemma of whether to raise menu prices for customers already feeling the pinch or try to absorb the increases.

Rachel Dobson, managing director of Lynx Purchasing, commented: “Hospitality businesses are already dealing with increased costs in areas such as staffing and business rates. Their ability to absorb further cost increases is limited, but at the same time, consumer confidence is very fragile.

“Although the headline rate of inflation is relatively low, it’s forecast to increase across the summer, and at the same time there are a number of products where prices are rising at higher rates.”

The warning comes as Lynx Purchasing publishes the Summer 2025 edition of its regular Market Forecast. Areas flagged up for concern include:

• Meat: Beef prices have been rising in the UK and across Europe since the start of the year, driven by lower production and continued high demand.
• Poultry: The continued impact of restrictions aimed at reducing the spread of avian is affecting the market globally.
• Potatoes: Potato prices have continued to increase, in the aftermath of extreme weather impacting both availability and quality of last year’s crop.
• Diary: Cheese saw prices increase, which is likely to continue across the summer, while egg supplies are seeing shortages due to avian flu.

A free copy of the Summer 2025 Lynx Purchasing Market Forecast can be downloaded from the website at www.lynxpurchasing.co.uk.