New data from the Foodservice Price Index (FPI) for July 2025 reveals that overall hospitality food and drink costs rose by 0.4% in the month, with the total basket up 3.7% on the year. The report, published by Prestige Purchasing, highlights that nine out of ten major food categories are in year-on-year inflation, while nine of the ten also saw inflation month-on-month, as global supply chains face mounting pressure from multiple factors.
The FPI shows that the Oils & Fats category has been particularly hard hit, with prices rocketing by 6.7% over the last year and a further 1.6% in July alone. This is driven by global factors, with palm, soy, and sunflower oil prices all surging due to strong demand and tightening supplies. Another area of significant concern is Coffee, Tea & Cocoa, where prices have soared by 9.2% year-on-year. This is primarily a result of tight global availability of Robusta coffee beans, following drought in Vietnam, and ongoing volatility in the cocoa market.
While most categories are facing upward pressure, the report offers a mixed picture. Meat & Poultry prices are up 4.0% year-on-year, with poultry consumption outpacing production and turkey supplies for the festive season already at typical Christmas price levels. In contrast, the Vegetables category has bucked the trend, showing a slight year-on-year reduction of 1.2% due to an expanded European potato crop, although other items like leafy greens are still facing upward pressure. Meanwhile, the Fish category saw a monthly price dip, despite severe supply pressures on core whitefish species like cod and haddock, with the latter’s prices having doubled compared to last year.
Commenting on the findings, Shaun Allen, CEO of Prestige Purchasing, stated, “The industry is navigating a persistent inflationary climate, with a mix of factors including climatic events, geopolitical issues, and challenges in labour and logistics all contributing to cost pressures. Businesses that remain agile and proactively review their sourcing strategies will be best positioned to mitigate the impact of this volatility and ensure long-term supply chain resilience.”
