Food inflation up anew in June: CGA index

Food prices reached 11.5% in June.

The inflation in the foodservice sector went up again as it reached 11.5% in June, according to NielsenIQ Prestige Foodservice Price Index. 

This is also the fifth consecutive month of double-digit percentage inflation, the research group indicated.

Inflation across all categories also went up year-on-year, with fruit, dairy, as well as oils and fats reporting more than 20% rising prices.

Month-on-month inflation in several categories were also caused by Russia’s invasion of Ukraine.

Heatwave in the UK also became a growing concern as it prompted the National Drought Group to introduce dry weather strategies such as banning farmers from watering crops during crucial periods in August and September.

This will put root vegetables including potatoes under particular threat.

Prestige Purchasing CEO Shaun Allen said: “Instability continues to be the dominant feature of food and drink markets, and we predict that this will continue into 2023. It’s essential for operators to mitigate the impact on gross margins by investing in skills and resource levels to effectively manage this volatile environment. Doing so in a timely manner can eliminate even these high levels of inflation.”