Food, drink inflation hits nearly 20% in September

This is the eighth consecutive month of double-digit inflation.

Inflation in food and drink prices was at 18.8% in September 2022, the eighth consecutive month to register a double-digit inflation, CGA Prestige Foodservice Price Index showed.

The index showed that the inflation has been at double digits in every month of 2022 since January.

Price increases topped 10% YoY in every food category in September, with Dairy and Oils & Fats being the highest. Others such as Meat, Vegetables and Fruit were all above 17%, with total food prices climbing 2.9% since August alone.

CGA and Prestige Purchasing analysts see that inflation will continue to be high.

Prestige Purchasing CEO Shaun Allen said,  “The speed of price rises from suppliers to the hospitality sector continues to increase, and there is little that we can see in the months ahead that will change that. Inflation has well and truly taken root in our supply chains, and whilst we do expect prices to rise more slowly in 2023 we believe we will still be seeing significant levels of inflation for most of next year. With so many other pressures it would be easy for operators to take the eye off the ball of managing supply prices, which in this market could be very costly.”

James Ashurst, client director at CGA by NielsenIQ, said, “Hospitality is besieged by the biggest challenges that many in the sector can remember. News that inflation is closing in on 20% will deal another heavy blow to the confidence of businesses and consumers alike, and there is no respite 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 fragile. Government support is desperately needed to sustain them through this storm.”