Foodservice inflation, the measure of cost rises in the catering sector, slowed for the twelfth consecutive month in June, new data revealed on Tuesday.
Year-on-year inflation in the food service sector reached 3.6% last month, meaning price growth is now at a normalised level, research from the CGA revealed.
Despite a full year’s worth of slowing, month-on-month inflation in the industry increased by 1.3% after a period of deflation or fractional rises.
CGA said the overall trend in the industry was “encouraging” but noted the monthly rise highlighted the challenges for businesses in dealing with fluctuating prices.
Out of the ten different food categories that the CGA measures, only vegetables continue to experience double-digit annual inflation.
This is largely driven by weakness in the potato market, as poor weather conditions have hampered yields and availability in both the 2023 and 2024 seasons.
Carrots, onions and brassicas prices have also been under pressure due to delays in planting and little availability in the crossover periods of seasons.
On a more positive note, two of the index’s categories saw prices deflate during June when compared to a year prior.
Reuben Pullan at CGA said: “Twelve continuous months of decline in inflation have brought much-needed respite on the cost challenges that have besieged the foodservice sector lately.
“Along with an easing of some other input prices and consumers’ improving spending confidence, it builds optimism for a strong remainder of 2024.”