Vegetables and soft drink prices rise as bread and cereal prices fall in November, study says

Worsening inflation is said to be expected in 2019.

The prices of vegetables and soft drink have risen on November while dairy and wheat prices decreased, CGA and Prestige Purchasing’s Foodservice Price Index said.

Vegetable prices are expected to rise in the coming months as the hot weather still affected its production. Soft drink prices rose by 9% year-on-year due to various factors such as the levy on the segment as well as the growing global demand.

Meanwhile, the bread and cereals prices fell down due to an increase in Russian exports despite this year’s poor growing conditions. But analysts warned that they are expecting an inflation rise early next year.

“The foodservice sector has been challenged by relatively high levels of inflation throughout 2018, and as the year draws to a close the upward trend shows no sign of abating. Weather patterns have worked against the supply chain, and micro factors like the soft drinks industry level and trade tariffs have made conditions even tougher,” Fiona Speakman, CGA Client director for food, said.

“Businesses will be hoping for a more stable 2019, but the ongoing effects of the weather on production coupled with the shadow of Brexit means further uncertainty is more likely.”