Inflation in foodservice prices reaches 3.2% in July, study reveals
Volatility in currency exchange rates, labour shortages and challenging weather conditions have reportedly contributed to the rise of food items.
Inflation in foodservice prices reached 3.2% in July 2018, according to the latest findings from CGA and Prestige Purchasing's Foodservice Price Index.
The figure is reportedly six times higher than levels measured previously during the year. Drivers of the rise are volatility in currency exchange rates, labour shortages and challenging weather conditions in the U.K. and European Union.
"[T]he early impacts of one of the longest dry and hot spells in the UK since 1976...has led to lower yields and smaller sizes of fruit and vegetables. Disruption to planting caused by extremely cold winter conditions and heavy spring rains exacerbated the problems, and prices of items including lettuces, salad leaves, brassicas and potatoes have all risen following poor yields," Prestige Purchasing explained in a post.
Prices of grain were also affected, with some EU countries experiencing heatwave conditions.
Prestige Purchasing previously released a study on the inflation in the oils and fats category, and on the rise of fruit prices. They previously predicted inflation to be at 3.4% by December 2018.
