Foodservice prices inch up 0.4% in August as sugar costs bite
It is due to adverse weather in Europe and Asia and lower production in Brazil.
Food and drink prices in the hospitality sector rose by 0.4% month on month in August, as the sugar, jam, syrups and chocolate category recorded high inflation.
According to a report from Prestige Purchasing and NIQ, global sugar prices moved sharply upward due to adverse weather in Europe and Asia and lower production in Brazil.
Moreover, the meat and poultry category returned to inflation, particularly for pork and lamb, pushing international prices higher, compounded by elevated feed and operational costs.
Additionally, the milk, cheese and eggs category posted its highest month on month increase in several months, after a tightening of raw milk availability in Europe.
Oils and fats also saw upward momentum, with global vegetable oil markets hitting their highest level since 2022 amidst high demand for palm and soybean oils.
These increases were partly offset by deflationary movements in fresh produce—vegetable prices dropped due to favourable domestic supply conditions, though prolonged dry weather in the UK and Europe threatens future yields for several field-grown crops.
Meanwhile, fruit inflation eased on strong seasonal availability of UK-grown soft fruits, stone fruits and early apples.
