Price inflation in food service peaks at 9%
Foodservice price inflation (FPI) has increased from 5.8% last month.
Prices remain higher year-on-year across all categories, with notable jumps for fruit and dairy products. While FPI currently reports food inflation at 9.0%, the last time we experienced inflation higher than this was in August 2008 when CPI reported food inflation at 14.5%.
Dairy FPI for May is 9.9%, a significant increase compared to last month. Prices for milk have continued to increase for many months, and are now being felt in foodservice. Processed dairy products such as cream, butter and cheese have continued to increase in price significantly above that of milk itself, driven by high global demand especially from Chinese importers, and low stocks.
Fruit FPI for May now sits at 12.7% - as a majority-imported category, the cumulative effects of the weakened pound have taken its toll especially when compared to the much stronger pound in May 2016.
Numerous factors continue to affect food and drink prices prompting food businesses to be more informed and active than ever in managing their cost.
Photo credit: UBMI Sarl
