Foodservice inflation slipped in April
Foodservice inflation fell in April year-on-year as compared to March despite the continuing price hike in most categories, according to the Foodservice Price Index from Prestige Purchasing and CGA.
The soft drinks category saw particularly high levels of inflation as manufacturers reformulated soft drinks to contain less sugar and of developing healthier and high-quality drinks in response to public demand.
Prices of hot drinks also rose, mostly attributed to tea production issues caused by drought conditions. Milk, cheese, and egg prices also witnessed high year-on-year inflation in April, an effect of high milk production in early 2018 keeping prices low this time last year. However, milk prices could fall as its production has hit a new three-year high in April.
On the other hand, prices in the fish category have eased after April’s historic peak thanks to the Easter holiday. But the report warned that the global salmon market may see some uplift in the next few months due to a possible plummeting of Norwegian salmon yields after an algal bloom hit stocks and an investigation into overuse of chemicals by leading producer Mowi, which may cause damage to Scottish Lochs.
Shaun Allen, CEO at Prestige Purchasing, even though the good weather conditions should reduce the prices of fruits and vegetables, some categories may still be vulnerable to price hikes.
“Most notably in meat and fish where disease is affecting stocks, such as pork continuing to be heavily impacted by African Swine Fever and salmon now under threat from an outbreak of an algal bloom,” he said.
