The latest Foodservice Price Index (FPI) report from Prestige Purchasing and CGA reveals more positive trends for the hospitality sector, with inflation dropping again in May 2024.
Year-on-year inflation fell to 4.6%, the lowest figure recorded by the Index in 28 months. May also saw month-on-month deflation of -0.4%—only the fourth such decrease in the last 32 months. The figures indicate a sustained return towards pre-pandemic levels of inflation and more closely mirror trends seen for some time in the Consumer Prices Index (CPI).
The basket of prices fell month-on-month in six of the Foodservice Price Index’s ten categories. The Oils and Fats category is of particular note, having delivered six consecutive months of year-on-year deflation. After more than a year of double-digit year-on-year inflation in most categories this was reduced to just one in May. It underscores a significant shift towards price stability across the foodservice sector.
This fall of input-inflation is very welcome, as the full basket of CPI has also fallen sharply to 2% year-on-year, and diners will soon come to expect stable pricing again in our restaurants. Buyers should be particularly wary of proposed supplier increases in this period of sharply falling inflation.
