January inflation drops to half of December YTD average: report
However, this might just be a “temporary respite”.
January saw an “unseasonal” month-on-month inflation drop in seven of ten of food categories, representing half of December’s YTD average, based on the latest Foodservice Price Index report.
The joint report by CGA and Prestige Purchasing noted that price fall has been going for six months now, presenting an “opportunity to lock in savings in purchasing.”
Whilst the holiday season pushed up prices of meats, like pork and turkey, other food categories saw drop in prices, including vegetables and dairy, which was “extremely rare.” Price fall of vegetables was attributed to the strong harvest of potatoes and onions.
However, the present drop in prices might just be a “temporary respite,” and inflation might pick up in Q2, Prestige Purchasing CEO Shaun Allen suggested in a statement.
As oil-producing countries are likely to cut oil production by 1 million barrels per day to mitigate the impact of the new coronavirus outbreak, price of transportation and packaging is seen to pick up “later in the year,” directly affecting food cost.
