The Foodservice Price Index (FPI) has been developed as a more accurate and relevant alternative to the government’s Consumer Price Index (CPI), which until now has been the only inflation index available to food purchasing professionals to measure success.
David Read, CEO of Prestige Purchasing, said: “While the CPI data is relevant for consumers and retail supermarkets, it doesn’t reflect prices on offer to caterers.
“Buyers who rely on CPI may be acting in an ill-informed manner when negotiating with suppliers. This is because the CPI is calculated using supermarket selling prices instead of foodservice wholesale prices, and we now know that these market movements are distinctly different.”
The FPI will be based on a basket of goods but gathered from wholesalers rather than retailers, which includes hot beverages, bread, cereal, fish, food products, fruit, meat, milk, cheese, eggs, oils and fats, soft drinks, sugar, jam, syrups, chocolate, confectionary and vegetables. It will show price fluctuations across each of these categories, as well as for the whole basket.
This will be published by CGA Strategy and Prestige Purchasing, who will also offer a range of different subscription services featuring insight and advice on how caterers can mitigate issues as they occur.