Despite the slight fall of 0.9 percentage points, inflation remains only just below the Index’s previous peak of 22.9% in December 2022. The latest Index also reports a month-on-month increase of 0.7%—in contrast to supermarkets, where prices fell by 0.4% between June and July.
Shaun Allen, chief executive of Prestige Purchasing, said: “Food and drink supply into hospitality has been slower to react to falling input costs than the retail sector. We are confident that over the remainder of the year inflation will begin to ease at our kitchen doors, but both buyers and suppliers will need to play their part in curbing the continually rising costs that threaten the existence of so many of our sector’s brilliant operators.”
The fish category recorded a 0.8% fall—its first month-on-month drop since July 2022. Dairy prices remained stable, and the month-on-month increase in the vegetables category slowed by half, from 3.2% in June to 1.6% in July.
James Ashurst, client director at CGA by NIQ, added: “Businesses will be relieved to see a slight easing of inflation in July, and there are some welcome early signs of relief in key spending areas for both operators and consumers.
“However, with inflation still topping 20%, trading conditions remain extremely challenging. It is especially frustrating at a time when prices are easing in the retail sector, and reinforces the case for targeted Government support for hospitality businesses.”