Nick Riley’s Post

Foodservice Price Index hits 28-month low as food prices continue to fall... 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). Shaun Allen, Prestige Purchasing CEO, said: “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.” Reuben Pullan, Senior Insight Consultant at CGA by NIQ, said: “After several years of relentlessly high inflation, these figures show some very welcome respite. While some rates remain higher than businesses would like, the general stability makes it much easier to plan for the future. In turn it should also reassure consumers, who have seen food and drink menu prices rise sharply but will hopefully become more confident with their spending as we move towards the second half of the year.” The full report may be downloaded here https://lnkd.in/eqsA2956 #sustainability #farmtofork #catering #schoolcatering #schoolmeals #food #teachersandschoolemployees #schoolbusinessmanagers #opportunity #strategy #education #procurement #facilitiesmanagement #fm #managementconsulting #plantbased #britishfood Invictus Partnership Ltd.

Foodservice Inflation Slowing But Challenges Lie Ahead The CGA Prestige Foodservice Price Index recorded year-on-year inflation of 12.6% in January—a drop of 1.2 percentage points from December's rate of 13.8%. It is the seventh successive month-on-month fall in inflation as markets adjust to falling commodity pricing. Foodservice Price Index inflation has now moved down by an average of 1.4% a month since June 2023, with expectations of further falls ahead. However, year-on-year inflation remains high in most categories, with only the Dairy and Oils & Fats segments below double digits. There is some relief month-on-month however, with four categories falling in price and only two reporting a rise of more than 1% versus December 2023. While continued falls in inflation are a positive sign for the industry, concerns remain for pricing over the coming months as farmer protests on the continent and border checks in the UK threaten to add further cost to supply. The British government’s proposal mandating the labelling of all meat and dairy products for exclusive consumption within the UK, and not for consumption within the EU, has been criticised by industry bodies, as it will result in increased food expenses, negatively impact exports and discourage investments in domestic food manufacturing—all of which are expected to increase food and beverage pricing in the UK. Shaun Allen, Prestige Purchasing CEO, said: “The current falls in inflation are a positive sign for operators; however, it is worth noting that prices are still rising compared to last year, and while inflation is easing, we remain in a period of unprecedented foodservice price increases. It is more pressing than ever for businesses to remain vigilant and assess price changes in their supply chain using good data and market insight.” James Ashurst, client director at CGA by NIQ, said: “While it’s encouraging to see a slowdown, proper respite on foodservice price inflation remains a long way off. Supply issues are causing widespread frustration at a time when commodity prices are relaxing and businesses and consumers should be finding the going a little easier. More government support, including a rethink on import and admin issues, would be welcome.” Read More:

Foodservice inflation continues to ease but underlying pressures remain Year-on-year food inflation in the foodservice sector continued its downward trend in September, falling to 2.4%, according to the latest Foodservice Price Index (FPI) from Prestige Purchasing and CGA by NIQ. This marks the 15th consecutive month of decline, offering some respite for businesses and consumers alike. However, the report also highlights persistent inflationary pressures, with nine out of 10 categories showing month-on-month price increases. Read more - https://lnkd.in/gx9ngciy #inflation #prices #food #insight #hospitality #hospitalityindustry #fpi

Year-on-year inflation in the foodservice sector has fallen for 12 months in a row, according to Prestige Purchasing and CGA by NIQ’s latest Foodservice Price Index (FPI) report. By Clare Nicholls

Foodservice Inflation Eases for the 15th Consecutive Month, but Underlying Pressures Remain The latest Foodservice Price Index (FPI) report from Prestige Purchasing and CGA reveals that year-on-year inflation in the hospitality sector continued its downward trend in September, falling to 2.4%. This marks the 15th consecutive month of decline, offering some respite for businesses and consumers alike. However, the report also highlights persistent inflationary pressures, with nine out of ten categories showing month-on-month price increases. This marks the fourth consecutive month of overall month-on-month inflation according to the index. Despite the encouraging year-on-year trend, challenges remain. The Vegetables category continues to report high inflation, driven in part by ongoing elevated potato prices. Meanwhile, the Oils & Fats category saw the largest month-on-month increase, primarily due to a surge in butter prices. While non-alcoholic beverages continue to be a significant driver of inflation, the Sugar, Jam, Syrups and Chocolate category, along with Vegetables, now show the highest year-on-year increases. This shift underscores the dynamic nature of foodservice inflation and the need for operators to remain vigilant across all categories. Shaun Allen, Prestige Purchasing CEO, commented: “The continued easing of year-on-year inflation is welcome news, but the sustained month-on-month increases across almost all categories highlight the volatility that still exists in the market. Operators need to be proactive and adaptable in their procurement strategies, paying close attention to emerging trends and potential disruptions to ensure they remain competitive.” Reuben Pullan, Senior Insight Consultant at CGA by NIQ, said: “After an ongoing stretch of price rises across the hospitality sector, this continued drop in inflation should bring some relief to hospitality venues and consumers alike. Although some costs are easing, month-on-month fluctuations indicate that both revenue and margins are likely to remain under pressure through the rest of 2024 and into next year.” Read More:

Heads up for all you food manufacturers out there! 🚨 A recent article in New Food Magazine discusses the concerning trend of food manufacturers' margins falling behind. The culprit? A combination of rising food inflation and stagnant profit margins. The article highlights an interesting finding - UK food manufacturers are stockpiling inventory at a time when other sectors are actively reducing theirs. This cautious approach stems from worries about price certainty and supply chain disruptions. But there's a catch: holding onto excess stock is hurting their profitability. 📉 The key takeaway? Food manufacturers need to strike a careful balance between managing risks and maintaining healthy financials. #foodmanufacturing #margins #inventorymanagement #supplychain #foodandbeveragemanufacturing #foodcost https://lnkd.in/g67RhN55

Foodservice Inflation Eases Again But Beverages Drive Month-On-Month Rise Year-on-year inflation in foodservice eased to 2.8% in August 2024, the latest Foodservice Price Index (FPI) report from Prestige Purchasing and CGA shows. It is the 14th straight month of decline, as prices continue to stabilise after a prolonged period of aggressive inflation. However, the report also reveals a 0.5% month-on-month increase in prices across the basket of goods—a third consecutive rise. This 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 & Juices segment recorded a particularly steep increase of 6.7%, while the Tea, Coffee & 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 & Fats by 1.2%. The Vegetables and Sugar, Jam, Syrups & Chocolate categories generated the highest inflation, rising 9.1% and 8.2% respectively—though these figures represent a slight easing from July. Shaun Allen, Prestige Purchasing CEO, commented: “The sustained downward trajectory of foodservice inflation is undoubtedly positive, but the persistent month-on-month increases and stubbornly high inflation in certain categories, particularly beverages, underscore the fragility of the current market. Operators need to maintain a proactive and adaptable approach to procurement to navigate these choppy waters.” Reuben Pullan, senior insight consultant at CGA by NIQ, added: “Several years of spiralling prices have been very difficult for hospitality, and there has been widespread relief at the steady retreat. 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.” Read More:

A new report by FCC / FAC expects food price increases to stabilize to pre-pandemic levels. The 2% decrease in grocery inflation, with 1-2% more expected, comes as the pressures driving high prices begin to ease.   For food and beverage manufacturers, positive outlooks are on the horizon. Fuel, transportation and packaging — input factors that had been the cause of increased costs — have all experienced slower price increases or even decreases as of late. So while sales can expect a slight fall, overall margins should improve.   https://lnkd.in/gsrcUw99

The exclusive  Foodservice Price Index  is jointly produced by Prestige Purchasing and CGA by NIQ, using foodservice data drawn from 7.8m transactions per month In the report, you can find that while inflation is slowing down, prices still remain historically high. View the report in the article, and reach out to see how NIQ can support challenging market conditions. #NIQ #NIQInsights

(NEW ZEALAND 08.07.24) #globalretail Costs from grocery suppliers to supermarkets increase 2.7%pa in June. New Zealand's food price inflation is slowing, with a 9.0% annual increase to May 2023, down from April's 12.5%. Fruit and vegetables led the rise at 18%, followed by grocery items at 10%. Monthly food prices decreased slightly by 0.2% in May. Despite the slowdown, specific items like eggs (up 57%) and cheese (up 29%) still show significant year-over-year increases. While the rate of increase is decelerating, food prices remain notably higher than last year, indicating ongoing pressure on consumers' grocery budgets. https://lnkd.in/gJK4DiBi