Food and drink prices in the hospitality sector rose by 0.7% in September, taking the Foodservice Price Index from CGA by NIQ and Prestige Purchasing to a record high of 151.1.
This latest movement marks the sixth consecutive month of rising wholesale prices for the UK hospitality and foodservice sector, underscoring persistent inflationary pressure across multiple categories. While the Index recorded a smaller month-on-month increase of 0.7% from August, upward pricing momentum continues despite mixed global commodity signals.
Inflation was most acute in the Oils & Fats category, where prices surged by 2.9% month-on-month. This escalation was primarily fuelled by tightness in the global supply of high-demand items like sunflower and rapeseed oils, which more than compensated for minor dips in palm and soybean prices.
Pressure on inputs extended to the Bread & Cereal category, which recorded a significant increase of 1.6%. Here, any benefit from softer global grain prices was largely negated for UK operators by high domestic operational costs including energy, packaging and labour, resulting in firm pricing for finished bakery products.
Further inflationary challenges came from physical supply constraints, notably in the Fish category, where prices rose by 1.4% due to limited whitefish quotas. The UK’s challenging summer weather meanwhile contributed to a 0.5% increase in the Vegetables category, as heat stress and water scarcity affected crop yields.
There was some relief in the Mineral Water, Soft Drinks & Juices category, where prices contracted by 0.4%. However, Coffee, Tea & Cocoa prices rose 1.4%, driven by tightening coffee and tea supplies despite a plunge in global cocoa futures.
Shaun Allen, CEO of Prestige Purchasing, said: “FPI hitting 151.1 and marking a sixth straight month of month-on-month increase confirms that deep-rooted inflationary pressure continues to define the UK foodservice sector. While we see some commodity markets, like cocoa, offering relief, this is immediately offset by high domestic operational costs in areas like energy and labour, which are driving up prices in critical categories like Oils & Fats and Bread & Cereal. Operators must continue to focus on resilience and strategic sourcing to navigate this prolonged period of uncertainty.”
Reuben Pullan, senior insight consultant at CGA by NIQ, said: “It’s been another year of relentless inflation in foodservice prices, hurting hospitality businesses and individuals alike. Alongside historically high costs in other key inputs like labour and energy, operators are facing a painful squeeze on margins, while menu price rises are forcing many consumers to trim their out-of-home eating and drinking. Hospitality must now hope for a burst of spending over the festive season, followed by respite on the multitude of macro and micro inflationary challenges in 2026.”
