Food and drink inflation remains ‘stubbornly high’ despite drop in overall rate

Annual inflation as measured by the consumer prices index fell to 8.7% in April – below double digits for the first time since August, as it continued a decline from 10.1% in March.

Inflation peaked at 11.1% in October.

City economists had forecast a bigger decline to 8.2%, while the Bank of England had said earlier this month it expected inflation to fall to 8.4% in April.

This is in part attributed to annual food price inflation, which remains near a historic high at 19.1%.

The rate of inflation for restaurants and hotels did ease slightly, however, falling from 11.3% in March to 10.2% in April.

Kate Nicholls, chief executive of UKHospitality said it was encouraging to see a more substantial drop in the overall rate of inflation, but added that food and drink inflation remained ‘stubbornly high’.

“This continued inflationary pressure shows there is a long way to go in this crisis yet,” she said.

“Food and drink are part of the core hospitality offering and it is becoming impossible for many to continue to absorb these costs.

“Sharp drops in energy, food and drink costs are urgently needed for businesses to remain viable and continue to serve communities across the country, create jobs and drive economic growth.”