However, despite the FPI showing certain food prices are coming down, including sugar, cocoa and fruit – the latter decreasing from 13.6% in June to 8.95% in July – others are still seeing a year-on-year rise.
Due to supply and labour issues in producing countries, the cost of fish, meats, and oils and fats are still rapidly increasing. Harvest issues for olive oil in new producing countries meant that oils and fats saw the highest price inflation for July, at 12.4%; whilst meat price inflation rose to 11.4%, a double-digit increase from July 2016. The price of wholesale milk, cheese and eggs also rose slightly, up to a year-on-year inflation figure of 10.6% for July.
Christopher Clare, head of consulting and insight at Prestige Purchasing, commented: “While the CGA Prestige Foodservice Price Index shows that overall the price inflation figures appear to have calmed, this is somewhat due to the high comparables of last year. However, there are still a number of crucial supply issues that could force up prices further in many key categories.”