Year-on-year inflation dropped to 1.9% in the final month of 2024, but prices rose by 1% from November—the highest monthly jump since June 2024.
In a marked shift from the previous two months, all ten categories of the Index recorded month-on-month inflation. The breadth of increases suggests that inflationary pressures are becoming more widespread across the foodservice sector.
Some categories showed continued easing in their year-on-year inflation rates. Vegetables (+3.0%) and sugar, jam, syrups & chocolate (+3.5%) saw declines—but oils & fats (+5.7%) emerged as a category of concern. Fish (-1.2%) remained the only category with year-on-year deflation.
Shaun Allen, chief executive of Prestige Purchasing, commented: “This month’s figures are a reminder that the battle against inflation is far from over. While we’ve seen encouraging progress in the year-on-year trend, the month-on-month increase is a reminder we must stay vigilant. The potential impact of the Autumn Budget, combined with these latest figures, suggests that we could be facing a renewed inflationary challenge in 2025.”
The December FPI report from Prestige and CGA highlights ongoing volatility and uncertainty in the foodservice market, and the need for operators to remain vigilant and closely monitor price trends across all categories. The current threat of an international trade war introduces further uncertainty into the market.
Reuben Pullan, senior insight consultant at CGA by NIQ, said: “After a solid end to 2024 for hospitality sales, news of renewed foodservice inflation is a concerning start to this year.
“On top of other pressures including increased international economic uncertainty, National Insurance rises, and hesitant consumer confidence, an upswing in prices will squeeze operators’ margins even tighter. The inflationary threat is another reason why hospitality needs more support from government so businesses can invest, create jobs and drive growth.”