Foodservice prices rise 5% in April as inflation pressures mount
The CGA Prestige Foodservice Price index reports falls in three of its ten categories, with ‘significant’ month-on-month increases in meat, fish, vegetables, oils and fats.
Shaun Allen, chief executive of Prestige Purchasing, said: “We have been predicting the return of food price inflation for some time, and the April Index confirms that the upwards trend is now in motion and is likely to continue. Amongst many competing pressures operators must focus extra attention on the management of their supply chain now if serious margin damage is to be avoided.”
It predicts that food price inflation are likely to intensify in the coming months due to a range of factors including Brexit-related costs, renewed restocking demands and distribution challenges.
Leonie-Jade Leigh, client manager at CGA, added: “Signs of inflation are unwelcome at a time when the hospitality sector is just beginning the long road to recovery from Covid.
“International economic issues and micro supply and demand problems will pile more pressure on businesses that are already battling a wide range of challenges, and they will need to closely monitor inflation and find ways to mitigate it through the rest of 2021.”