The latest ONS figures for the Consumer Prices Index (CPI) have shown that inflation rose by 4.0% in the 12 months to December 2023, up from 3.9% in November. This is the first time the rate has increased since February 2023, causing some concerns that the market may be heading back into a period of rising inflation. But will this unexpected rise translate to food, and will hospitality businesses see a rise in inflation numbers as well? Thankfully, this appears to be unlikely.
The largest upward contributors to the monthly change in CPI annual rates have been alcohol and tobacco, as the party season saw sales increase, and prices rise. However, the largest downward contributions came from food and non-alcoholic beverages, continuing the trend of falls for the food and non-alcoholic beverage market. The CGA Prestige Foodservice Price Index is also expected to fall in December, dropping between one to two percent from November’s 15% year-on-year. This would mark a sixth consecutive month of falls in inflation, a trend expected to continue until at least quarter 3 of this year. Click here for further information on The CGA Foodservice price Index, and stay ahead of inflation in 2024.
The CGA Prestige Foodservice Price Index numbers will be published later this week, with further information to follow. To receive our newsletter, sign up here.
