While year-on-year inflation eased to 2.8% in August 2024 — the 14th straight month of decline — as prices continue to stabilise after a prolonged period of aggressive inflation, the report also reveals a 0.5% increase in month-on-month prices across the basket of goods.
“The sustained downward trajectory of foodservice inflation is undoubtedly positive, but the persistent month-on-month increases and stubbornly high inflation in certain categories underscore the fragility of the current market,” says Shaun Allen, Prestige Purchasing CEO.
August’s uptick was primarily fuelled by the beverage category (not including alcoholic beverages), with total inflation here reaching 5.8% year-on-year.
The mineral waters, soft drinks and juices segment recorded a particularly steep increase of 6.7%, while the tea, coffee and cocoa category remained elevated at 4.7%.
In contrast, total food basket prices experienced a more moderate inflation rate of 2.5%.
Two of the eight food categories saw year-on-year decreases, with dairy falling by 0.3% and oils and fats by 1.2%.
Vegetables and the sugar, jam, syrups and chocolate categories generated the highest inflation, rising 9.1% and 8.2% respectively — though these figures represent a slight easing from July.
“Several years of spiralling prices have been very difficult for hospitality, and there has been widespread relief at the steady retreat,” notes Reuben Pullan, senior insight consultant at CGA by NIQ.
“Nevertheless, foodservice inflation remains above many other sectors, and an upswing over the summer shows the challenges are far from over.
“While some other costs continue to ease for businesses and consumers alike, both revenue and margins are likely to remain under pressure over the final third of 2024.”